Trade-Ideas: Jarden Corporation (JAH) 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 Jarden Corporation (JAH) 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 Jarden Corporation as such a stock due to the following factors:
- JAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.3 million.
- JAH has traded 977,317 shares today.
- JAH traded in a range 314.2% of the normal price range with a price range of $2.31.
- JAH 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 JAH with the Ticky from Trade-Ideas. See the FREE profile for JAH NOW at Trade-IdeasMore details on JAH: Jarden Corporation manufactures, markets, and distributes consumer products in the Unites States and internationally. Currently there are 6 analysts that rate Jarden Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.The average volume for Jarden Corporation has been 930,400 shares per day over the past 30 days. Jarden has a market cap of $4.8 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.24 and a short float of 4.2% with 6.13 days to cover.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 Jarden Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- JAH's revenue growth trails the industry average of 21.4%. Since the same quarter one year prior, revenues slightly increased by 5.0%. 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.
- JARDEN CORP' 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, JARDEN CORP increased its bottom line by earning $2.09 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($3.26 versus $2.09).
- Compared to its closing price of one year ago, JAH's share price has jumped by 34.38%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- Net operating cash flow has declined marginally to $164.80 million or 1.43% when compared to the same quarter last year. Despite a decrease in cash flow of 1.43%, JARDEN CORP is still significantly exceeding the industry average of -327.06%.
- The debt-to-equity ratio is very high at 2.44 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, JAH's quick ratio is somewhat strong at 1.11, demonstrating the ability to handle short-term liquidity needs.
- You can view the full Jarden Corporation 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