Trade-Ideas LLC identified

Verisk Analytics

(

VRSK

) 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 $100.4 million.
  • VRSK has traded 618,380 shares today.
  • VRSK traded in a range 441% of the normal price range with a price range of $5.55.
  • VRSK traded below its daily resistance level (quality: 28 days, meaning that the stock is crossing a resistance level set by the last 28 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:

TST Recommends

Verisk Analytics, Inc. provides information about risk to professionals in insurance, healthcare, financial services, government, supply chain, and risk management in the United States and internationally. VRSK has a PE ratio of 28. Currently there are 9 analysts that rate Verisk Analytics a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Verisk Analytics has been 1.5 million shares per day over the past 30 days. Verisk Analytics has a market cap of $13.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.85 and a short float of 4.5% with 4.74 days to cover. Shares are up 25.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Verisk Analytics as a

buy

. 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 expanding profit margins. 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 0.5%. Since the same quarter one year prior, revenues rose by 17.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 86.53% and other important driving factors, this stock has surged by 31.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, VRSK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • VERISK ANALYTICS INC reported significant earnings per share improvement 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 $2.19 versus $1.97 in the prior year. This year, the market expects an improvement in earnings ($2.99 versus $2.19).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 85.4% when compared to the same quarter one year prior, rising from $88.10 million to $163.32 million.
  • The gross profit margin for VERISK ANALYTICS INC is rather high; currently it is at 61.98%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 32.81% significantly outperformed against the industry average.

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