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 City National as such a stock due to the following factors:
- CYN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.2 million.
- CYN has traded 205,594 shares today.
- CYN traded in a range 218.5% of the normal price range with a price range of $2.99.
- CYN traded above its daily resistance level (quality: 17 days, meaning that the stock is crossing a resistance level set by the last 17 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CYN with the Ticky from Trade-Ideas. See the FREE profile for CYN NOW at Trade-Ideas
More details on CYN:
City National Corporation operates as the bank holding company for City National Bank that provides banking, investment, and trust services to small to mid-sized businesses, entrepreneurs, professionals, and affluent individuals. The stock currently has a dividend yield of 1.8%. CYN has a PE ratio of 18.2. Currently there is 1 analyst that rates City National a buy, no analysts rate it a sell, and 13 rate it a hold.
The average volume for City National has been 248,500 shares per day over the past 30 days. City has a market cap of $4.0 billion and is part of the financial sector and banking industry. The stock has a beta of 1.51 and a short float of 1.9% with 3.40 days to cover. Shares are down 6.3% year-to-date as of the close of trading on Thursday.
rates City National as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- CYN's revenue growth has slightly outpaced the industry average of 5.1%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- 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 Commercial Banks industry average. The net income increased by 5.8% when compared to the same quarter one year prior, going from $51.52 million to $54.51 million.
- CITY NATIONAL CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CITY NATIONAL CORP increased its bottom line by earning $3.99 versus $3.84 in the prior year. This year, the market expects an improvement in earnings ($4.00 versus $3.99).
- The gross profit margin for CITY NATIONAL CORP is currently very high, coming in at 94.29%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CYN's net profit margin of 17.34% significantly trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full City National Ratings Report.