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 GrubHub as such a stock due to the following factors:
- GRUB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $58.2 million.
- GRUB has traded 932,013 shares today.
- GRUB traded in a range 220.7% of the normal price range with a price range of $2.48.
- GRUB traded above its daily resistance level (quality: 397 days, meaning that the stock is crossing a resistance level set by the last 397 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 GRUB:
GrubHub Inc., together with its subsidiaries, provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. The company connects approximately 40,000 local restaurants with diners in approximately 1,000 cities. GRUB has a PE ratio of 72. Currently there are 10 analysts that rate GrubHub a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for GrubHub has been 1.9 million shares per day over the past 30 days. GrubHub has a market cap of $2.7 billion and is part of the technology sector and internet industry. Shares are up 31.2% year-to-date as of the close of trading on Tuesday.
rates GrubHub as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.
Highlights from the ratings report include:
- GRUB's revenue growth has slightly outpaced the industry average of 20.5%. Since the same quarter one year prior, revenues rose by 27.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- GRUB has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.82, which clearly demonstrates the ability to cover short-term cash needs.
- GRUBHUB INC 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, GRUBHUB INC increased its bottom line by earning $0.44 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.44).
- Net operating cash flow has decreased to $18.67 million or 38.64% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- GRUB has underperformed the S&P 500 Index, declining 7.31% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full GrubHub Ratings Report.