Rockwell Collins (COL) Marked As A Barbarian At The Gate

Trade-Ideas LLC identified Rockwell Collins (COL) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Rockwell Collins

(

COL

) 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 Rockwell Collins as such a stock due to the following factors:

  • COL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.7 million.
  • COL has traded 107,323 shares today.
  • COL traded in a range 264.9% of the normal price range with a price range of $3.35.
  • COL traded above its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 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.

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More details on COL:

Rockwell Collins, Inc. designs, produces, and supports communications and aviation systems worldwide. The company operates through three segments: Commercial Systems, Government Systems, and Information Management Services. The stock currently has a dividend yield of 1.5%. COL has a PE ratio of 17. Currently there are 8 analysts that rate Rockwell Collins a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Rockwell Collins has been 747,400 shares per day over the past 30 days. Rockwell Collins has a market cap of $11.2 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.78 and a short float of 4.1% with 8.32 days to cover. Shares are down 7.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Rockwell Collins as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • ROCKWELL COLLINS INC has improved earnings per share by 6.5% 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, ROCKWELL COLLINS INC increased its bottom line by earning $5.19 versus $4.52 in the prior year. This year, the market expects an improvement in earnings ($5.50 versus $5.19).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 8.9% when compared to the same quarter one year prior, going from $157.00 million to $171.00 million.
  • 38.37% is the gross profit margin for ROCKWELL COLLINS INC which we consider to be strong. Regardless of COL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, COL's net profit margin of 13.04% compares favorably to the industry average.
  • COL, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Even though the current debt-to-equity ratio is 1.26, it is still below the industry average, suggesting that this level of debt is acceptable within the Aerospace & Defense industry. Despite the fact that COL's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.54 is low and demonstrates weak liquidity.

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