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 Littelfuse as such a stock due to the following factors:
- LFUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.0 million.
- LFUS has traded 73,746 shares today.
- LFUS traded in a range 223.6% of the normal price range with a price range of $4.76.
- LFUS traded above its daily resistance level (quality: 36 days, meaning that the stock is crossing a resistance level set by the last 36 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 LFUS:
Littelfuse, Inc. designs, manufactures, and sells circuit protection devices for use in the automotive, electronic, and electrical markets worldwide. It operates in three segments: Electronics, Automotive, and Electrical. The stock currently has a dividend yield of 1.1%. LFUS has a PE ratio of 19.6. Currently there are 2 analysts that rate Littelfuse a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Littelfuse has been 137,400 shares per day over the past 30 days. Littelfuse has a market cap of $2.0 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.79 and a short float of 2.5% with 2.55 days to cover. Shares are down 3.1% year-to-date as of the close of trading on Tuesday.
rates Littelfuse as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 17.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $31.00 million or 35.03% when compared to the same quarter last year. In addition, LITTELFUSE INC has also vastly surpassed the industry average cash flow growth rate of -15.19%.
- 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, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- LITTELFUSE INC's earnings per share declined by 8.5% 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, LITTELFUSE INC increased its bottom line by earning $3.93 versus $3.40 in the prior year. This year, the market expects an improvement in earnings ($4.94 versus $3.93).
- Despite currently having a low debt-to-equity ratio of 0.41, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that LFUS's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.76 is high and demonstrates strong liquidity.
- You can view the full Littelfuse Ratings Report.