Trade-Ideas LLC identified

NCR

(

NCR

) 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 NCR as such a stock due to the following factors:

  • NCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.0 million.
  • NCR has traded 569,429 shares today.
  • NCR traded in a range 904% of the normal price range with a price range of $5.66.
  • NCR traded above its daily resistance level (quality: 368 days, meaning that the stock is crossing a resistance level set by the last 368 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 NCR:

NCR Corporation, a technology company, provides products and services that enable businesses to connect, interact, and transact with their customers worldwide. The company operates through four segments: Financial Services, Retail Solutions, Hospitality, and Emerging Industries. Currently there are 3 analysts that rate NCR a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for NCR has been 1.0 million shares per day over the past 30 days. NCR has a market cap of $3.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.83 and a short float of 1.9% with 4.20 days to cover. Shares are up 28.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates NCR as a

hold

. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • After a year of stock price fluctuations, the net result is that NCR's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Despite the weak revenue results, NCR has outperformed against the industry average of 12.7%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • NCR CORP's earnings per share declined by 30.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, NCR CORP swung to a loss, reporting -$0.94 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.94 versus -$0.94).
  • The debt-to-equity ratio is very high at 2.63 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, NCR maintains a poor quick ratio of 0.83, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, NCR CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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