Barbarian At The Gate: American Equity Investment Life Holding Com (AEL)
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 American Equity Investment Life Holding Com (AEL) 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 American Equity Investment Life Holding Com as such a stock due to the following factors:
- AEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.8 million.
- AEL has traded 1.2 million shares today.
- AEL traded in a range 229.1% of the normal price range with a price range of $0.74.
- AEL traded above 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 '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 AEL with the Ticky from Trade-Ideas. See the FREE profile for AEL NOW at Trade-IdeasMore details on AEL: American Equity Investment Life Holding Company, through its subsidiaries, operates in the insurance business in 50 states and the District of Columbia. The stock currently has a dividend yield of 0.7%. AEL has a PE ratio of 8.3. Currently there are 3 analysts that rate American Equity Investment Life Holding Com a buy, no analysts rate it a sell, and 2 rate it a hold.The average volume for American Equity Investment Life Holding Com has been 1.3 million shares per day over the past 30 days. The stock has a beta of 1.90 and a short float of 26.5% with 12.52 days to cover. Shares are up 70.7% 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 American Equity Investment Life Holding Com as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, attractive 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:
- AEL's very impressive revenue growth greatly exceeded the industry average of 12.9%. Since the same quarter one year prior, revenues leaped by 127.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 470.00% and other important driving factors, this stock has surged by 81.05% 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, AEL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 540.3% when compared to the same quarter one year prior, rising from $18.76 million to $120.11 million.
- 45.48% is the gross profit margin for AMERICAN EQTY INVT LIFE HLDG which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 27.32% significantly outperformed against the industry average.
- You can view the full American Equity Investment Life Holding Com 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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