Trade-Ideas LLC identified

People's United Financial

(

PBCT

) 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 People's United Financial as such a stock due to the following factors:

  • PBCT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.2 million.
  • PBCT has traded 869,384 shares today.
  • PBCT traded in a range 317.4% of the normal price range with a price range of $0.86.
  • PBCT 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 PBCT:

People's United Financial, Inc. operates as the bank holding company for People's United Bank that provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers. The stock currently has a dividend yield of 4.1%. PBCT has a PE ratio of 2. Currently there is 1 analyst that rates People's United Financial a buy, 3 analysts rate it a sell, and 8 rate it a hold.

The average volume for People's United Financial has been 3.4 million shares per day over the past 30 days. People's United Financial has a market cap of $5.0 billion and is part of the financial sector and banking industry. The stock has a beta of 0.67 and a short float of 10.1% with 8.66 days to cover. Shares are up 8.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates People's United Financial as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, reasonable valuation levels, 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:

  • Net operating cash flow has significantly increased by 118.04% to $129.30 million when compared to the same quarter last year. Despite an increase in cash flow of 118.04%, PEOPLE'S UNITED FINL INC is still growing at a significantly lower rate than the industry average of 776.02%.
  • The gross profit margin for PEOPLE'S UNITED FINL INC is currently very high, coming in at 87.97%. Regardless of PBCT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 17.75% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 2.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • PEOPLE'S UNITED FINL INC's earnings per share declined by 16.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PEOPLE'S UNITED FINL INC increased its bottom line by earning $0.85 versus $0.74 in the prior year. This year, the market expects earnings to be in line with last year ($0.85 versus $0.85).

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