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 TAL Education Group as such a stock due to the following factors:
- XRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.5 million.
- XRS has traded 630,774 shares today.
- XRS traded in a range 202% of the normal price range with a price range of $3.02.
- XRS traded above its daily resistance level (quality: 25 days, meaning that the stock is crossing a resistance level set by the last 25 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 XRS:
TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China. XRS has a PE ratio of 36. Currently there are 2 analysts that rate TAL Education Group a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for TAL Education Group has been 503,200 shares per day over the past 30 days. TAL Education Group has a market cap of $4.3 billion and is part of the services sector and diversified services industry. Shares are up 18.8% year-to-date as of the close of trading on Monday.
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rates TAL Education Group as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 42.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt 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 Diversified Consumer Services industry and the overall market, TAL EDUCATION GROUP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Compared to its closing price of one year ago, XRS's share price has jumped by 48.00%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- TAL EDUCATION GROUP's earnings per share declined by 23.5% 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, TAL EDUCATION GROUP increased its bottom line by earning $1.20 versus $0.81 in the prior year. This year, the market expects an improvement in earnings ($1.55 versus $1.20).
- You can view the full TAL Education Group Ratings Report.