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 Equifax as such a stock due to the following factors:
- EFX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.9 million.
- EFX has traded 201,189 shares today.
- EFX traded in a range 211.1% of the normal price range with a price range of $3.17.
- EFX traded below 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 '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 EFX:
Equifax Inc. provides information solutions and human resources business process outsourcing services for businesses, governments, and consumers. The company operates through four segments: U.S. Information Solutions (USIS), International, Workforce Solutions, and Personal Solutions. The stock currently has a dividend yield of 1%. EFX has a PE ratio of 37. Currently there are 9 analysts that rate Equifax a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Equifax has been 660,100 shares per day over the past 30 days. Equifax has a market cap of $16.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.95 and a short float of 2.8% with 5.60 days to cover. Shares are up 21.6% year-to-date as of the close of trading on Wednesday.
rates Equifax as a
. 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 notable return on equity. 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 1.6%. Since the same quarter one year prior, revenues rose by 11.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.45% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EFX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- EQUIFAX INC has improved earnings per share by 16.4% 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, EQUIFAX INC increased its bottom line by earning $3.56 versus $2.97 in the prior year. This year, the market expects an improvement in earnings ($5.24 versus $3.56).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Professional Services industry average. The net income increased by 15.6% when compared to the same quarter one year prior, going from $88.30 million to $102.10 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Professional Services industry and the overall market on the basis of return on equity, EQUIFAX INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Equifax Ratings Report.