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 NiSource as such a stock due to the following factors:
- NI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.2 million.
- NI has traded 1.2 million shares today.
- NI traded in a range 222.2% of the normal price range with a price range of $1.06.
- NI traded above its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 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 NI:
NiSource Inc., an energy holding company, provides natural gas, electricity, and other products and services in the United States. It operates through two segments, Gas Distribution Operations and Electric Operations. The stock currently has a dividend yield of 2.9%. NI has a PE ratio of 34. Currently there are 5 analysts that rate NiSource a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for NiSource has been 2.9 million shares per day over the past 30 days. NiSource has a market cap of $6.9 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.29 and a short float of 2.9% with 2.84 days to cover. Shares are up 10.2% year-to-date as of the close of trading on Tuesday.
rates NiSource as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. We feel its 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, NI's share price has jumped by 32.71%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 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 Multi-Utilities industry and the overall market on the basis of return on equity, NISOURCE INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 27.9%. Since the same quarter one year prior, revenues fell by 21.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- NISOURCE INC's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, NISOURCE INC reported lower earnings of $0.57 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($1.07 versus $0.57).
- Net operating cash flow has decreased to $262.90 million or 39.29% when compared to the same quarter last year. Despite a decrease in cash flow NISOURCE INC is still fairing well by exceeding its industry average cash flow growth rate of -53.65%.
- You can view the full NiSource Ratings Report.