Trade-Ideas LLC identified

Amdocs

(

DOX

) 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 Amdocs as such a stock due to the following factors:

  • DOX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.2 million.
  • DOX has traded 851,596 shares today.
  • DOX traded in a range 215.5% of the normal price range with a price range of $2.29.
  • DOX traded above its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in DOX with the Ticky from Trade-Ideas. See the FREE profile for DOX NOW at Trade-Ideas

More details on DOX:

Amdocs Limited, through its subsidiaries, provides software products and services for communications, entertainment, and media industry service providers worldwide. The stock currently has a dividend yield of 1.2%. DOX has a PE ratio of 19. Currently there are 2 analysts that rate Amdocs a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Amdocs has been 785,900 shares per day over the past 30 days. Amdocs has a market cap of $8.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.52 and a short float of 0.4% with 0.69 days to cover. Shares are up 17.8% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Amdocs as a

buy

. 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, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 26.9%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • DOX's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, DOX has a quick ratio of 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $206.78 million or 7.19% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -12.81%.
  • 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 IT Services industry and the overall market on the basis of return on equity, AMDOCS has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.