Trade-Ideas LLC identified

Manhattan Associates

(

MANH

) 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 Manhattan Associates as such a stock due to the following factors:

  • MANH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.7 million.
  • MANH has traded 592,996 shares today.
  • MANH traded in a range 218.4% of the normal price range with a price range of $3.40.
  • MANH traded above its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 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 MANH:

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers, and other organizations. MANH has a PE ratio of 41. Currently there are 4 analysts that rate Manhattan Associates a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Manhattan Associates has been 790,200 shares per day over the past 30 days. Manhattan Associates has a market cap of $4.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.34 and a short float of 8% with 8.94 days to cover. Shares are down 20.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Manhattan Associates as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 8.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MANH 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. To add to this, MANH has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, MANHATTAN ASSOCIATES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • MANHATTAN ASSOCIATES INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MANHATTAN ASSOCIATES INC increased its bottom line by earning $1.40 versus $1.08 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus $1.40).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 29.6% when compared to the same quarter one year prior, rising from $20.35 million to $26.37 million.

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