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 "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified BanColombia as such a stock due to the following factors:
- CIB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.2 million.
- CIB has traded 373,430 shares today.
- CIB traded in a range 243.6% of the normal price range with a price range of $2.50.
- CIB traded above its daily resistance level (quality: 31 days, meaning that the stock is crossing a resistance level set by the last 31 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on CIB:
Bancolombia S.A., a full service financial institution, provides various banking products and services to individual and corporate customers. The stock currently has a dividend yield of 2.9%. CIB has a PE ratio of 11.2. Currently there are no analysts that rate BanColombia a buy, 2 analysts rate it a sell, and 2 rate it a hold.
The average volume for BanColombia has been 477,700 shares per day over the past 30 days. BanColombia has a market cap of $7.0 billion and is part of the financial sector and banking industry. Shares are up 13.7% year-to-date as of the close of trading on Friday.
rates BanColombia as a
. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The gross profit margin for BANCOLOMBIA SA is rather high; currently it is at 64.77%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CIB's net profit margin of 16.42% significantly trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.4%. Since the same quarter one year prior, revenues slightly dropped by 1.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income has decreased by 4.0% when compared to the same quarter one year ago, dropping from $269.58 million to $258.70 million.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, CIB has underperformed the S&P 500 Index, declining 10.30% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- BANCOLOMBIA SA' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BANCOLOMBIA SA reported lower earnings of $9.21 versus $11.35 in the prior year. For the next year, the market is expecting a contraction of 53.1% in earnings ($4.32 versus $9.21).
- You can view the full BanColombia Ratings Report.