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 Dominion Resources as such a stock due to the following factors:
- D has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $155.7 million.
- D has traded 670,146 shares today.
- D traded in a range 263.7% of the normal price range with a price range of $2.17.
- D traded above its daily resistance level (quality: 16 days, meaning that the stock is crossing a resistance level set by the last 16 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 D:
Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States. The company operates through three segments: Dominion Virginia Power (DVP), Dominion Generation, and Dominion Energy. The stock currently has a dividend yield of 3.6%. D has a PE ratio of 61.4. Currently there are 9 analysts that rate Dominion Resources a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Dominion Resources has been 2.6 million shares per day over the past 30 days. Dominion has a market cap of $38.5 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.09 and a short float of 1.8% with 4.43 days to cover. Shares are up 2.5% year-to-date as of the close of trading on Thursday.
rates Dominion Resources as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in net income, good cash flow from operations and solid stock price performance. We feel these 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:
- D's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 3.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 39.10% is the gross profit margin for DOMINION RESOURCES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.57% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multi-Utilities industry. The net income increased by 172.2% when compared to the same quarter one year prior, rising from $209.00 million to $569.00 million.
- Net operating cash flow has slightly increased to $1,159.00 million or 8.92% when compared to the same quarter last year. Despite an increase in cash flow, DOMINION RESOURCES INC's cash flow growth rate is still lower than the industry average growth rate of 26.60%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Dominion Resources Ratings Report.