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 "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 TE Connectivity as such a stock due to the following factors:
- TEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $98.7 million.
- TEL has traded 2.1 million shares today.
- TEL traded in a range 202.5% of the normal price range with a price range of $2.06.
- TEL traded below its daily resistance level (quality: 18 days, meaning that the stock is crossing a resistance level set by the last 18 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 TEL:
TE Connectivity Ltd., together with its subsidiaries, designs and manufactures products that connect and protect the flow of power and data inside the products used by consumers and industries. The stock currently has a dividend yield of 1.9%. TEL has a PE ratio of 17.4. Currently there are 4 analysts that rate TE Connectivity a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for TE Connectivity has been 1.7 million shares per day over the past 30 days. TE Connectivity has a market cap of $21.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.74 and a short float of 0.5% with 1.18 days to cover. Shares are up 41.4% year to date as of the close of trading on Monday.
rates TE Connectivity as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- TEL's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 2.0%. 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.
- Compared to its closing price of one year ago, TEL's share price has jumped by 54.05%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TEL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- 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 Electronic Equipment, Instruments & Components industry and the overall market, TE CONNECTIVITY LTD's return on equity exceeds that of both the industry average and the S&P 500.
- 38.05% is the gross profit margin for TE CONNECTIVITY LTD which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.27% is above that of the industry average.
- TE CONNECTIVITY LTD' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, TE CONNECTIVITY LTD increased its bottom line by earning $3.02 versus $2.70 in the prior year. This year, the market expects an improvement in earnings ($3.65 versus $3.02).
- You can view the full TE Connectivity Ratings Report.