Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified ServiceMaster Global Holdings as such a stock due to the following factors:
- SERV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.0 million.
- SERV has traded 53,468 shares today.
- SERV traded in a range 204% of the normal price range with a price range of $1.34.
- SERV traded below its daily resistance level (quality: 29 days, meaning that the stock is crossing a resistance level set by the last 29 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on SERV:
ServiceMaster Global Holdings, Inc. provides residential and commercial services in the United States. It operates in three segments: Terminix, American Home Shield, and the Franchise Services Group. SERV has a PE ratio of 32. Currently there are 4 analysts that rate ServiceMaster Global Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for ServiceMaster Global Holdings has been 1.5 million shares per day over the past 30 days. ServiceMaster Global has a market cap of $5.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.58 and a short float of 5% with 4.38 days to cover. Shares are up 1.5% year-to-date as of the close of trading on Tuesday.
rates ServiceMaster Global Holdings as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- SERVICEMASTER GLOBAL HLDGS has improved earnings per share by 33.3% 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. We feel that this trend should continue. During the past fiscal year, SERVICEMASTER GLOBAL HLDGS increased its bottom line by earning $1.19 versus $0.33 in the prior year. This year, the market expects an improvement in earnings ($2.06 versus $1.19).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Consumer Services industry. The net income increased by 39.3% when compared to the same quarter one year prior, rising from $28.00 million to $39.00 million.
- You can view the full ServiceMaster Global Holdings Ratings Report.