Robert Half International (RHI) Is Water-Logged And Getting Wetter Today
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
(
) 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 Robert Half International as such a stock due to the following factors:
- RHI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.7 million.
- RHI has traded 263,223 shares today.
- RHI traded in a range 251.9% of the normal price range with a price range of $2.34.
- RHI traded below its daily resistance level (quality: 21 days, meaning that the stock is crossing a resistance level set by the last 21 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 RHI with the Ticky from Trade-Ideas. See the FREE profile for RHI NOW at Trade-Ideas
More details on RHI:
Robert Half International Inc. provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. It operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services. The stock currently has a dividend yield of 1.3%. RHI has a PE ratio of 27.8. Currently there are 8 analysts that rate Robert Half International a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Robert Half International has been 793,100 shares per day over the past 30 days. Robert Half International has a market cap of $8.5 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.92 and a short float of 2% with 3.81 days to cover. Shares are up 7.4% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Robert Half International 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, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.4%. Since the same quarter one year prior, revenues rose by 12.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- RHI's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, RHI has a quick ratio of 1.52, 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 Professional Services industry and the overall market, ROBERT HALF INTL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 26.53% and other important driving factors, this stock has surged by 54.17% 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, RHI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ROBERT HALF INTL INC has improved earnings per share by 26.5% 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, ROBERT HALF INTL INC increased its bottom line by earning $2.25 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($2.66 versus $2.25).
- You can view the full Robert Half International Ratings Report.
null