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 "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 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 $43.2 million.
- IACI has traded 555,043 shares today.
- IACI traded in a range 213.3% of the normal price range with a price range of $2.11.
- IACI traded below its daily resistance level (quality: 15 days, meaning that the stock is crossing a resistance level set by the last 15 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 IACI with the Ticky from Trade-Ideas. See the FREE profile for IACI NOW at Trade-Ideas
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 1.4%. IACI has a PE ratio of 22.6. Currently there are 7 analysts that rate IAC/InterActiveCorp a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for IAC/InterActiveCorp has been 1.3 million shares per day over the past 30 days. IAC/InterActiveCorp has a market cap of $5.4 billion and is part of the technology sector and internet industry. The stock has a beta of 0.55 and a short float of 4.2% with 4.86 days to cover. Shares are up 0.9% year-to-date as of the close of trading on Tuesday.
rates IAC/InterActiveCorp as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, IACI's share price has jumped by 40.51%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IACI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, IAC/INTERACTIVECORP's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for IAC/INTERACTIVECORP is currently very high, coming in at 71.74%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, IACI's net profit margin of 4.84% significantly trails the industry average.
- IAC/INTERACTIVECORP's earnings per share declined by 32.3% in the most recent quarter compared to the same quarter a year ago. 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, IAC/INTERACTIVECORP increased its bottom line by earning $3.27 versus $1.81 in the prior year. This year, the market expects an improvement in earnings ($3.64 versus $3.27).
- You can view the full IAC/InterActiveCorp Ratings Report.