Barbarian At The Gate: IAC/InterActiveCorp (IAC)
Trade-Ideas LLC identified IAC/InterActiveCorp ( IAC) 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 IAC/InterActiveCorp as such a stock due to the following factors:
- IAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.2 million.
- IAC has traded 651,363 shares today.
- IAC traded in a range 464.3% of the normal price range with a price range of $4.69.
- IAC traded above its daily resistance level (quality: 92 days, meaning that the stock is crossing a resistance level set by the last 92 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 IAC: IAC/InterActiveCorp operates as a media and Internet company in the United States and internationally. It operates through six segments: Match Group, HomeAdvisor, Publishing, Applications, Video, and Other. The stock currently has a dividend yield of 3.1%. IAC has a PE ratio of 36. Currently there are 10 analysts that rate IAC/InterActiveCorp a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for IAC/InterActiveCorp has been 741,700 shares per day over the past 30 days. IAC/InterActiveCorp has a market cap of $3.8 billion and is part of the technology sector and internet industry. The stock has a beta of 1.26 and a short float of 1.5% with 1.91 days to cover. Shares are down 21.4% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates IAC/InterActiveCorp as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- IAC's revenue growth trails the industry average of 20.6%. Since the same quarter one year prior, revenues slightly increased by 2.2%. 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.
- IAC's debt-to-equity ratio of 0.99 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that IAC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.34 is high and demonstrates strong liquidity.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Internet Software & Services industry and the overall market, IAC/INTERACTIVECORP's return on equity is below that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.35%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 148.71% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- You can view the full IAC/InterActiveCorp Ratings Report.
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