Trade-Ideas: FMC Technologies (FTI) Is Today's "Barbarian At The Gate" Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified FMC Technologies (FTI) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified FMC Technologies as such a stock due to the following factors:
- FTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.7 million.
- FTI has traded 558,427 shares today.
- FTI traded in a range 226.7% of the normal price range with a price range of $1.93.
- FTI traded above its daily resistance level (quality: 15 days, meaning that the stock is crossing a resistance level set by the last 15 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock s movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.EXCLUSIVE OFFER: Get the inside scoop on opportunities in FTI with the Ticky from Trade-Ideas. See the FREE profile for FTI NOW at Trade-IdeasMore details on FTI: FMC Technologies, Inc. provides technology solutions for the energy industry worldwide. FTI has a PE ratio of 29.8. Currently there are 14 analysts that rate FMC Technologies a buy, no analysts rate it a sell, and 10 rate it a hold.The average volume for FMC Technologies has been 1.4 million shares per day over the past 30 days. FMC has a market cap of $12.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.13 and a short float of 3.8% with 6.83 days to cover. Shares are up 22.9% year to date as of the close of trading on Wednesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates FMC Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.0%. Since the same quarter one year prior, revenues rose by 14.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 374.64% to $305.40 million when compared to the same quarter last year. In addition, FMC TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of 187.92%.
- FMC TECHNOLOGIES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FMC TECHNOLOGIES INC increased its bottom line by earning $1.78 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($2.20 versus $1.78).
- FTI's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.95 is weak.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market, FMC TECHNOLOGIES INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full FMC Technologies Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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