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 "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified IAC/InterActiveCorp as such a stock due to the following factors:
- IACI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $81.6 million.
- IACI has traded 419,645 shares today.
- IACI is trading at 1.70 times the normal volume for the stock at this time of day.
- IACI crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on IACI:
IAC/InterActiveCorp operates as a media and Internet company in the United States and internationally. The company operates in five segments: Search & Applications, Match, Local, Media, and Other segments. The stock currently has a dividend yield of 2.1%. IACI has a PE ratio of 23.5. Currently there are 8 analysts that rate IAC/InterActiveCorp a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for IAC/InterActiveCorp has been 1.1 million shares per day over the past 30 days. IAC/InterActiveCorp has a market cap of $5.1 billion and is part of the technology sector and internet industry. The stock has a beta of 0.78 and a short float of 5.2% with 3.31 days to cover. Shares are down 2.4% year-to-date as of the close of trading on Thursday.
rates IAC/InterActiveCorp as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 237.1% when compared to the same quarter one year prior, rising from $96.94 million to $326.81 million.
- IACI's revenue growth trails the industry average of 29.1%. Since the same quarter one year prior, revenues slightly increased by 3.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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 gross profit margin for IAC/INTERACTIVECORP is currently very high, coming in at 71.08%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 41.77% significantly outperformed against the industry average.
- You can view the full IAC/InterActiveCorp Ratings Report.