Trade-Ideas LLC identified

Cornerstone OnDemand

(

CSOD

) 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 Cornerstone OnDemand as such a stock due to the following factors:

  • CSOD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.8 million.
  • CSOD has traded 80,281 shares today.
  • CSOD traded in a range 227% of the normal price range with a price range of $2.94.
  • CSOD 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 CSOD with the Ticky from Trade-Ideas. See the FREE profile for CSOD NOW at Trade-Ideas

More details on CSOD:

Cornerstone OnDemand, Inc. provides cloud-based talent management solutions delivered as software-as-a-service. It provides recruiting, onboarding, learning, performance, succession, compensation, extended enterprise, and salesforce products offerings. Currently there are 6 analysts that rate Cornerstone OnDemand a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Cornerstone OnDemand has been 559,300 shares per day over the past 30 days. Cornerstone OnDemand has a market cap of $1.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of -0.06 and a short float of 10.1% with 5.07 days to cover. Shares are down 8% year-to-date as of the close of trading on Thursday.

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 Cornerstone OnDemand as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 39.9% when compared to the same quarter one year ago, falling from -$16.63 million to -$23.26 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, CORNERSTONE ONDEMAND INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$12.68 million or 55.47% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio is very high at 18.86 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, CSOD's quick ratio is somewhat strong at 1.35, demonstrating the ability to handle short-term liquidity needs.
  • The share price of CORNERSTONE ONDEMAND INC has not done very well: it is down 11.89% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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.