Barbarian At The Gate: Sensata Technologies Holding N.V (ST)
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 Sensata Technologies Holding N.V (ST) 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 Sensata Technologies Holding N.V as such a stock due to the following factors:
- ST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.9 million.
- ST has traded 1.8 million shares today.
- ST traded in a range 221.2% of the normal price range with a price range of $1.43.
- ST traded above its daily resistance level (quality: 34 days, meaning that the stock is crossing a resistance level set by the last 34 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 ST with the Ticky from Trade-Ideas. See the FREE profile for ST NOW at Trade-IdeasMore details on ST: Sensata Technologies Holding N.V, through its subsidiaries, engages in the development, manufacture, and sale of sensors and controls primarily in the Americas, the Asia Pacific, and Europe. The company operates in two segments, Sensors and Controls. ST has a PE ratio of 35.3. Currently there are 6 analysts that rate Sensata Technologies Holding N.V a buy, no analysts rate it a sell, and 1 rates it a hold.The average volume for Sensata Technologies Holding N.V has been 1.1 million shares per day over the past 30 days. Sensata Technologies Holding N.V has a market cap of $6.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.16 and a short float of 2.3% with 2.20 days to cover. Shares are down 5.1% 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 Sensata Technologies Holding N.V as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.Highlights from the ratings report include:
- SENSATA TECHNOLOGIES HLDG NV reported significant earnings per share improvement 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, SENSATA TECHNOLOGIES HLDG NV increased its bottom line by earning $0.97 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus $0.97).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Electrical Equipment industry average. The net income increased by 59.1% when compared to the same quarter one year prior, rising from $41.51 million to $66.02 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 5.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 39.59% is the gross profit margin for SENSATA TECHNOLOGIES HLDG NV which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.23% is above that of the industry average.
- Net operating cash flow has increased to $128.64 million or 35.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.53%.
- You can view the full Sensata Technologies Holding N.V 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