Trade-Ideas: Liberty Global (LBTYA) 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 Liberty Global (LBTYA) 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 Liberty Global as such a stock due to the following factors:
- LBTYA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $114.0 million.
- LBTYA has traded 281,833 shares today.
- LBTYA traded in a range 212.3% of the normal price range with a price range of $2.73.
- LBTYA traded above its daily resistance level (quality: 19 days, meaning that the stock is crossing a resistance level set by the last 19 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 LBTYA with the Ticky from Trade-Ideas. See the FREE profile for LBTYA NOW at Trade-IdeasMore details on LBTYA: Liberty Global plc, an international cable company, provides television, broadband Internet, and telephony services. Currently there are 8 analysts that rate Liberty Global a buy, no analysts rate it a sell, and none rate it a hold.The average volume for Liberty Global has been 2.8 million shares per day over the past 30 days. Liberty Global has a market cap of $17.0 billion and is part of the services sector and media industry. The stock has a beta of 1.39 and a short float of 5.7% with 4.28 days to cover. Shares are up 20.2% 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 Liberty Global as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, good cash flow from operations and expanding profit margins. 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 2.4%. Since the same quarter one year prior, revenues rose by 25.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 95.06% and other important driving factors, this stock has surged by 38.45% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LBTYA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LIBERTY GLOBAL PLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LIBERTY GLOBAL PLC continued to lose money by earning -$2.33 versus -$3.18 in the prior year. This year, the market expects an improvement in earnings ($1.49 versus -$2.33).
- Net operating cash flow has increased to $788.50 million or 21.47% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.84%.
- The gross profit margin for LIBERTY GLOBAL PLC is rather high; currently it is at 62.96%. Regardless of LBTYA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LBTYA's net profit margin of -0.36% significantly underperformed when compared to the industry average.
- You can view the full Liberty Global 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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV