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 "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Reinsurance Group of America as such a stock due to the following factors:
- RGA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.1 million.
- RGA has traded 159,930 shares today.
- RGA is trading at 4.11 times the normal volume for the stock at this time of day.
- RGA crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on RGA:
Reinsurance Group of America, Incorporated is engaged in the life and health reinsurance business. The stock currently has a dividend yield of 1.8%. RGA has a PE ratio of 8.8. Currently there are 4 analysts that rate Reinsurance Group of America a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Reinsurance Group of America has been 410,300 shares per day over the past 30 days. Reinsurance Group of America has a market cap of $5.2 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.30 and a short float of 0.9% with 0.90 days to cover. Shares are down 0.2% year-to-date as of the close of trading on Monday.
rates Reinsurance Group of America as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 499.7% when compared to the same quarter one year prior, rising from -$49.61 million to $198.30 million.
- RGA's revenue growth trails the industry average of 24.7%. Since the same quarter one year prior, revenues slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $366.58 million or 18.17% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.74%.
- REINSURANCE GROUP AMER INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, REINSURANCE GROUP AMER INC reported lower earnings of $5.76 versus $8.53 in the prior year. This year, the market expects an improvement in earnings ($8.00 versus $5.76).
- You can view the full Reinsurance Group of America Ratings Report.