Trade-Ideas: Northern Trust Corporation (NTRS) 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 Northern Trust Corporation (NTRS) 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 Northern Trust Corporation as such a stock due to the following factors:
- NTRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $80.9 million.
- NTRS has traded 974,829 shares today.
- NTRS traded in a range 214.3% of the normal price range with a price range of $2.03.
- NTRS traded above its daily resistance level (quality: 50 days, meaning that the stock is crossing a resistance level set by the last 50 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 NTRS with the Ticky from Trade-Ideas. See the FREE profile for NTRS NOW at Trade-IdeasMore details on NTRS: Northern Trust Corporation, through its subsidiaries, provides asset servicing, fund administration, asset management, fiduciary, and banking solutions worldwide. The stock currently has a dividend yield of 2.3%. NTRS has a PE ratio of 19.2. Currently there is 1 analyst that rates Northern Trust Corporation a buy, 4 analysts rate it a sell, and 9 rate it a hold.The average volume for Northern Trust Corporation has been 1.2 million shares per day over the past 30 days. Northern Trust has a market cap of $13.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.31 and a short float of 1.3% with 1.93 days to cover. Shares are up 9.8% year to date as of the close of trading on Friday.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 Northern Trust Corporation as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- NORTHERN TRUST CORP has improved earnings per share by 6.8% 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, NORTHERN TRUST CORP increased its bottom line by earning $2.81 versus $2.46 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.81).
- NTRS's revenue growth trails the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for NORTHERN TRUST CORP is currently very high, coming in at 94.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.76% is above that of the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Capital Markets industry and the overall market, NORTHERN TRUST CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Northern Trust 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