Alliance Data Systems (ADS) Marked As Today's Roof Leaker Stock
- ADS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $149.1 million.
- ADS has traded 181,136 shares today.
- ADS is trading at 1.59 times the normal volume for the stock at this time of day.
- ADS crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in ADS with the Ticky from Trade-Ideas. See the FREE profile for ADS NOW at Trade-Ideas More details on ADS: Alliance Data Systems Corporation provides marketing and loyalty solutions in the United States, Canada, and other countries. ADS has a PE ratio of 32.4. Currently there are 12 analysts that rate Alliance Data Systems a buy, no analysts rate it a sell, and 5 rate it a hold. The average volume for Alliance Data Systems has been 531,700 shares per day over the past 30 days. Alliance Data Systems has a market cap of $14.5 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.19 and a short float of 10.7% with 6.99 days to cover. Shares are down 0.7% year-to-date as of the close of trading on Thursday. 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 Alliance Data Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. 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:
- The revenue growth greatly exceeded the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 23.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ALLIANCE DATA SYSTEMS CORP has improved earnings per share by 28.1% 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, ALLIANCE DATA SYSTEMS CORP increased its bottom line by earning $7.43 versus $6.60 in the prior year. This year, the market expects an improvement in earnings ($12.40 versus $7.43).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income increased by 18.0% when compared to the same quarter one year prior, going from $116.44 million to $137.44 million.
- Net operating cash flow has slightly increased to $254.69 million or 1.28% when compared to the same quarter last year. In addition, ALLIANCE DATA SYSTEMS CORP has also modestly surpassed the industry average cash flow growth rate of -4.06%.
- Powered by its strong earnings growth of 28.07% and other important driving factors, this stock has surged by 26.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Alliance Data Systems 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.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts