Symantec (SYMC) Shows Signs Of Being Water-Logged And Getting Wetter
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 Symantec as such a stock due to the following factors:
- SYMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $112.6 million.
- SYMC has traded 55,258 shares today.
- SYMC traded in a range 229.4% of the normal price range with a price range of $0.82.
- SYMC traded below its daily resistance level (quality: 38 days, meaning that the stock is crossing a resistance level set by the last 38 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 SYMC:
Symantec Corporation, together with its subsidiaries, provides security, backup, and availability solutions worldwide. Its products and services protect people and information in various environments from the mobile device and enterprise data center and to cloud-based systems. The stock currently has a dividend yield of 3%. SYMC has a PE ratio of 13. Currently there is 1 analyst that rates Symantec a buy, 3 analysts rate it a sell, and 14 rate it a hold.
The average volume for Symantec has been 5.5 million shares per day over the past 30 days. Symantec has a market cap of $13.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.22 and a short float of 0.9% with 1.00 days to cover. Shares are down 22.3% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Symantec as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.
Highlights from the ratings report include:
- Although SYMC's debt-to-equity ratio of 0.30 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash problems.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 17.3%. Since the same quarter one year prior, revenues slightly dropped by 7.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has decreased to $134.00 million or 22.54% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Software industry average. The net income has significantly decreased by 36.1% when compared to the same quarter one year ago, falling from $244.00 million to $156.00 million.
- You can view the full Symantec Ratings Report.
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