FactSet Research Systems (FDS) Is Today's Water-Logged And Getting Wetter Stock
Trade-Ideas LLC identified
(
) 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 FactSet Research Systems as such a stock due to the following factors:
- FDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.3 million.
- FDS has traded 75,829 shares today.
- FDS traded in a range 213% of the normal price range with a price range of $5.21.
- FDS traded below its daily resistance level (quality: 22 days, meaning that the stock is crossing a resistance level set by the last 22 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.
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More details on FDS:
FactSet Research Systems Inc. provides integrated financial information and analytical applications to investment community in the United States, Europe, and the Asia Pacific. The stock currently has a dividend yield of 1%. FDS has a PE ratio of 31. Currently there is 1 analyst that rates FactSet Research Systems a buy, no analysts rate it a sell, and 11 rate it a hold.
The average volume for FactSet Research Systems has been 286,100 shares per day over the past 30 days. FactSet Research Systems has a market cap of $7.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.81 and a short float of 5.3% with 7.11 days to cover. Shares are up 23.6% year-to-date as of the close of trading on Thursday.
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Analysis:
rates FactSet Research Systems as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. 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:
- FDS's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 9.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although FDS's debt-to-equity ratio of 0.07 is very low, it is currently higher than that of the industry average. To add to this, FDS has a quick ratio of 1.99, which demonstrates the ability of the company to cover short-term liquidity needs.
- 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. Compared to other companies in the Diversified Financial Services industry and the overall market, FACTSET RESEARCH SYSTEMS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 31.46% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FDS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full FactSet Research Systems Ratings Report.
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