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 CIT Group as such a stock due to the following factors:
- CIT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.6 million.
- CIT has traded 671,214 shares today.
- CIT traded in a range 265.5% of the normal price range with a price range of $1.81.
- CIT traded above its daily resistance level (quality: 2 days, meaning that the stock is crossing a resistance level set by the last 2 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 CIT:
CIT Group Inc. operates as the holding company for CIT Bank, National Association that provides banking and related services to commercial and individual customers. The stock currently has a dividend yield of 1.7%. CIT has a PE ratio of 6. Currently there are 6 analysts that rate CIT Group a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for CIT Group has been 1.6 million shares per day over the past 30 days. CIT Group has a market cap of $6.9 billion and is part of the financial sector and banking industry. The stock has a beta of 1.44 and a short float of 3.8% with 3.79 days to cover. Shares are down 13.4% year-to-date as of the close of trading on Wednesday.
rates CIT Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 29.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for CIT GROUP INC is rather high; currently it is at 51.30%. Regardless of CIT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CIT's net profit margin of 12.40% is significantly lower than the industry average.
- CIT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.76%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, CIT GROUP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full CIT Group Ratings Report.