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 Newell Rubbermaid as such a stock due to the following factors:
- NWL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.8 million.
- NWL has traded 3.3 million shares today.
- NWL traded in a range 226.2% of the normal price range with a price range of $1.81.
- NWL traded below its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 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.
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More details on NWL:
Newell Rubbermaid Inc. manufactures and markets consumer and commercial products worldwide. It operates through five segments: Writing, Home Solutions, Tools, Commercial Products, and Baby & Parenting. The stock currently has a dividend yield of 1.9%. NWL has a PE ratio of 21.9. Currently there are 11 analysts that rate Newell Rubbermaid a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Newell Rubbermaid has been 1.6 million shares per day over the past 30 days. Newell Rubbermaid has a market cap of $9.6 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.09 and a short float of 1.4% with 2.60 days to cover. Shares are up 7.8% year-to-date as of the close of trading on Thursday.
rates Newell Rubbermaid as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- NWL's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 3.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
- NEWELL RUBBERMAID INC has improved earnings per share by 32.5% 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, NEWELL RUBBERMAID INC increased its bottom line by earning $1.45 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus $1.45).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 37.1% when compared to the same quarter one year prior, rising from $109.80 million to $150.60 million.
- 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 Household Durables industry and the overall market, NEWELL RUBBERMAID INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full Newell Rubbermaid Ratings Report.