Trade-Ideas LLC identified Gartner ( IT) 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 Gartner as such a stock due to the following factors:

  • IT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.8 million.
  • IT has traded 111,064 shares today.
  • IT traded in a range 332.3% of the normal price range with a price range of $4.73.
  • IT traded above its daily resistance level (quality: 155 days, meaning that the stock is crossing a resistance level set by the last 155 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 IT: Gartner, Inc., an information technology research and advisory company, provides independent and objective research and analysis on the information technology (IT), computer hardware, software, communications, and related technology industries. IT has a PE ratio of 42. Currently there are 4 analysts that rate Gartner a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Gartner has been 341,300 shares per day over the past 30 days. Gartner 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 0.83 and a short float of 3.6% with 11.16 days to cover. Shares are down 3.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Gartner as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.7%. Since the same quarter one year prior, revenues rose by 10.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GARTNER INC has improved earnings per share by 18.2% 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, GARTNER INC increased its bottom line by earning $2.07 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($2.65 versus $2.07).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the IT Services industry average. The net income increased by 11.2% when compared to the same quarter one year prior, going from $59.14 million to $65.76 million.
  • The gross profit margin for GARTNER INC is rather high; currently it is at 60.05%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.21% trails the industry average.
  • Net operating cash flow has increased to $79.25 million or 11.35% when compared to the same quarter last year. Despite an increase in cash flow, GARTNER INC's cash flow growth rate is still lower than the industry average growth rate of 30.45%.

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