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Trade-Ideas LLC identified
) 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 IPG Photonics as such a stock due to the following factors:
- IPGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.1 million.
- IPGP has traded 144,440 shares today.
- IPGP traded in a range 259.6% of the normal price range with a price range of $2.96.
- IPGP traded above its daily resistance level (quality: 95 days, meaning that the stock is crossing a resistance level set by the last 95 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 IPGP:
IPG Photonics Corporation develops and manufactures fiber lasers, fiber amplifiers, and diode lasers that are used in various applications, primarily in materials processing. IPGP has a PE ratio of 20.5. Currently there are 6 analysts that rate IPG Photonics a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for IPG Photonics has been 361,600 shares per day over the past 30 days. IPG Photonics has a market cap of $3.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.49 and a short float of 18.9% with 17.71 days to cover. Shares are down 18.9% year-to-date as of the close of trading on Monday.
rates IPG Photonics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income 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 8.6%. Since the same quarter one year prior, revenues rose by 20.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- IPGP's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.70, which clearly demonstrates the ability to cover short-term cash needs.
- IPG PHOTONICS CORP has improved earnings per share by 14.9% 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, IPG PHOTONICS CORP increased its bottom line by earning $2.98 versus $2.81 in the prior year. This year, the market expects an improvement in earnings ($3.45 versus $2.98).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry average. The net income increased by 15.4% when compared to the same quarter one year prior, going from $35.13 million to $40.53 million.
- Net operating cash flow has significantly increased by 482.67% to $43.39 million when compared to the same quarter last year. In addition, IPG PHOTONICS CORP has also vastly surpassed the industry average cash flow growth rate of 43.68%.
- You can view the full IPG Photonics Ratings Report.