Trade-Ideas LLC identified

Tech Data

(

TECD

) 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 Tech Data as such a stock due to the following factors:

  • TECD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.4 million.
  • TECD has traded 186,487 shares today.
  • TECD traded in a range 209.8% of the normal price range with a price range of $4.80.
  • TECD traded above its daily resistance level (quality: 83 days, meaning that the stock is crossing a resistance level set by the last 83 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 TECD:

Tech Data Corporation engages in the wholesale distribution of technology products. TECD has a PE ratio of 1. Currently there is 1 analyst that rates Tech Data a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Tech Data has been 384,400 shares per day over the past 30 days. Tech Data has a market cap of $2.3 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.60 and a short float of 8.3% with 7.49 days to cover. Shares are up 4.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tech Data as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, attractive valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Electronic Equipment, Instruments & Components industry average. The net income increased by 0.5% when compared to the same quarter one year prior, going from $41.70 million to $41.90 million.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, TECH DATA CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to -$81.82 million or 24.01% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.38%.

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