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 Verisk Analytics as such a stock due to the following factors:
- VRSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.6 million.
- VRSK has traded 158,957 shares today.
- VRSK traded in a range 200.8% of the normal price range with a price range of $2.08.
- VRSK traded below its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 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 VRSK:
Verisk Analytics, Inc. provides proprietary data, analytic methods, and embedded decision support solutions for detecting fraud in property and casualty (P&C) insurance, financial, and healthcare industries in the United States. VRSK has a PE ratio of 30.0. Currently there are 10 analysts that rate Verisk Analytics a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Verisk Analytics has been 611,100 shares per day over the past 30 days. Verisk Analytics has a market cap of $10.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.43 and a short float of 0.9% with 1.77 days to cover. Shares are down 3.9% year-to-date as of the close of trading on Tuesday.
rates Verisk Analytics as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- VRSK's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 8.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- VERISK ANALYTICS INC has improved earnings per share by 10.6% 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 two years. We feel that this trend should continue. During the past fiscal year, VERISK ANALYTICS INC increased its bottom line by earning $1.97 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($2.41 versus $1.97).
- The gross profit margin for VERISK ANALYTICS INC is rather high; currently it is at 59.28%. Regardless of VRSK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VRSK's net profit margin of 20.79% significantly outperformed against the industry.
- The net income growth from the same quarter one year ago has exceeded that of the Professional Services industry average, but is less than that of the S&P 500. The net income increased by 4.6% when compared to the same quarter one year prior, going from $84.21 million to $88.10 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Professional Services industry and the overall market, VERISK ANALYTICS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Verisk Analytics Ratings Report.