Trade-Ideas: Northern Trust Corporation (NTRS) Is Today's "Water-Logged And Getting Wetter" 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 "water-logged and getting wetter" (weak stocks crossing below support 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 $35.6 million.
- NTRS has traded 365,327 shares today.
- NTRS traded in a range 2164.6% of the normal price range with a price range of $24.31.
- NTRS traded below its daily resistance level (quality: 531 days, meaning that the stock is crossing a resistance level set by the last 531 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.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 2.2%. NTRS has a PE ratio of 18.9. 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 $13.5 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 1.1% with 2.18 days to cover. Shares are up 12.5% 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 revenue growth, growth in earnings per share, expanding profit margins, good cash flow from operations and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- NORTHERN TRUST CORP has improved earnings per share by 15.1% 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 ($3.00 versus $2.81).
- The gross profit margin for NORTHERN TRUST CORP is currently very high, coming in at 94.47%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.32% is above that of the industry average.
- Net operating cash flow has significantly increased by 790.27% to $2,242.60 million when compared to the same quarter last year. In addition, NORTHERN TRUST CORP has also vastly surpassed the industry average cash flow growth rate of -3.71%.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 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.
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