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 "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Invesco as such a stock due to the following factors:
- IVZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $109.4 million.
- IVZ has traded 100,720 shares today.
- IVZ is trading at 4.99 times the normal volume for the stock at this time of day.
- IVZ crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on IVZ:
Invesco Ltd. is a publicly owned investment manager. It primarily provides its services to institutional clients including major public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, and financial institutions. The stock currently has a dividend yield of 2.7%. IVZ has a PE ratio of 18.3. Currently there are 9 analysts that rate Invesco a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Invesco has been 3.4 million shares per day over the past 30 days. Invesco has a market cap of $14.8 billion and is part of the financial sector and financial services industry. The stock has a beta of 2.12 and a short float of 2.8% with 3.20 days to cover. Shares are down 9.1% year-to-date as of the close of trading on Monday.
rates Invesco as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 14.8%. Since the same quarter one year prior, revenues rose by 15.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 26.82%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Regarding the stock's future course, although almost any stock can fall in a broad market decline, IVZ should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Capital Markets industry average. The net income increased by 33.7% when compared to the same quarter one year prior, rising from $170.60 million to $228.10 million.
- Net operating cash flow has significantly increased by 374.18% to $334.30 million when compared to the same quarter last year. In addition, INVESCO LTD has also vastly surpassed the industry average cash flow growth rate of 255.90%.
- You can view the full Invesco Ratings Report.