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Trade-Ideas: CBOE Holdings (CBOE) Is Today's "Barbarian At The Gate" Stock

Stock quotes in this article: CBOE

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 CBOE Holdings ( CBOE) 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 CBOE Holdings as such a stock due to the following factors:

  • CBOE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.9 million.
  • CBOE has traded 76,362 shares today.
  • CBOE traded in a range 211.7% of the normal price range with a price range of $1.50.
  • CBOE traded above its daily resistance level (quality: 17 days, meaning that the stock is crossing a resistance level set by the last 17 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.

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More details on CBOE:

CBOE Holdings, Inc., through its subsidiaries, operates markets for the trading of listed and exchange-traded options contracts. The stock currently has a dividend yield of 1.6%. CBOE has a PE ratio of 22.9. Currently there is 1 analyst that rates CBOE Holdings a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for CBOE Holdings has been 632,900 shares per day over the past 30 days. CBOE has a market cap of $4.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.58 and a short float of 2.4% with 4.24 days to cover. Shares are up 53.3% year to date as of the close of trading on Monday.

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 CBOE Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, reasonable valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • Since the same quarter one year prior, revenues rose by 13.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Compared to where it was trading one year ago, CBOE is up 54.97% to its most recent closing price of 45.44. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.
  • The net income increased by 19.9% when compared to the same quarter one year prior, going from $38.50 million to $46.16 million.
  • The gross profit margin for CBOE HOLDINGS INC is rather high; currently it is at 56.36%. It has increased from the same quarter the previous year.

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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