Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
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 Riverbed Technology as such a stock due to the following factors:
- RVBD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.9 million.
- RVBD has traded 573,331 shares today.
- RVBD traded in a range 213.8% of the normal price range with a price range of $1.15.
- RVBD 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.
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More details on RVBD:
Riverbed Technology, Inc. provides application performance infrastructure solutions in the United States and internationally. RVBD has a PE ratio of 135.4. Currently there are 2 analysts that rate Riverbed Technology a buy, no analysts rate it a sell, and 19 rate it a hold.
The average volume for Riverbed Technology has been 1.4 million shares per day over the past 30 days. Riverbed Technology has a market cap of $2.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.42 and a short float of 2.3% with 1.37 days to cover. Shares are down 0.9% year-to-date as of the close of trading on Tuesday.
rates Riverbed Technology as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.
Highlights from the ratings report include:
- RVBD's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 140.9% when compared to the same quarter one year prior, rising from -$16.52 million to $6.77 million.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- 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 Communications Equipment industry and the overall market, RIVERBED TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $36.73 million or 1.54% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, RIVERBED TECHNOLOGY INC has marginally lower results.
- You can view the full Riverbed Technology Ratings Report.