Trade-Ideas LLC identified

Broadridge Financial Solutions

(

BR

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Broadridge Financial Solutions as such a stock due to the following factors:

  • BR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.2 million.
  • BR has traded 351,208 shares today.
  • BR traded in a range 230.7% of the normal price range with a price range of $1.90.
  • BR traded below its daily resistance level (quality: 19 days, meaning that the stock is crossing a resistance level set by the last 19 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BR with the Ticky from Trade-Ideas. See the FREE profile for BR NOW at Trade-Ideas

More details on BR:

Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry in the United States, Canada, the United Kingdom, and internationally. The stock currently has a dividend yield of 2%. BR has a PE ratio of 26. Currently there are 2 analysts that rate Broadridge Financial Solutions a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Broadridge Financial Solutions has been 677,300 shares per day over the past 30 days. Broadridge Financial has a market cap of $7.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.04 and a short float of 1.4% with 2.85 days to cover. Shares are up 27.6% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Broadridge Financial Solutions as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 27.2%. Since the same quarter one year prior, revenues slightly increased by 4.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, BR has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.60% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • BROADRIDGE FINANCIAL SOLUTNS has improved earnings per share by 19.5% 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, BROADRIDGE FINANCIAL SOLUTNS increased its bottom line by earning $2.32 versus $2.12 in the prior year. This year, the market expects an improvement in earnings ($2.74 versus $2.32).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.