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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 Realogy Holdings as such a stock due to the following factors:
- RLGY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $78.3 million.
- RLGY has traded 2.2 million shares today.
- RLGY traded in a range 250.6% of the normal price range with a price range of $1.89.
- RLGY traded above its daily resistance level (quality: 31 days, meaning that the stock is crossing a resistance level set by the last 31 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 RLGY:
Realogy Holdings Corp. provides real estate and relocation services worldwide. RLGY has a PE ratio of 11.5. Currently there are 7 analysts that rate Realogy Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Realogy Holdings has been 2.3 million shares per day over the past 30 days. Realogy has a market cap of $5.4 billion and is part of the financial sector and real estate industry. Shares are down 26.7% year-to-date as of the close of trading on Friday.
rates Realogy Holdings as a
. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The debt-to-equity ratio is very high at 2.13 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, RLGY has a quick ratio of 0.58, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- The gross profit margin for REALOGY HOLDINGS CORP is rather low; currently it is at 16.98%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -4.56% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$110.00 million or 155.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- RLGY has underperformed the S&P 500 Index, declining 24.54% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- REALOGY HOLDINGS CORP has improved earnings per share by 38.5% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, REALOGY HOLDINGS CORP turned its bottom line around by earning $2.96 versus -$3.73 in the prior year. For the next year, the market is expecting a contraction of 56.1% in earnings ($1.30 versus $2.96).
- You can view the full Realogy Holdings Ratings Report.