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 IAC/InterActiveCorp as such a stock due to the following factors:
- IACI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.2 million.
- IACI has traded 730,589 shares today.
- IACI traded in a range 223% of the normal price range with a price range of $2.73.
- IACI traded above its daily resistance level (quality: 4 days, meaning that the stock is crossing a resistance level set by the last 4 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 IACI:
IAC/InterActiveCorp operates as a media and Internet company in the United States and internationally. The stock currently has a dividend yield of 1.8%. IACI has a PE ratio of 23.9. Currently there are 8 analysts that rate IAC/InterActiveCorp a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for IAC/InterActiveCorp has been 905,200 shares per day over the past 30 days. IAC/InterActiveCorp has a market cap of $4.2 billion and is part of the technology sector and internet industry. The stock has a beta of 0.54 and a short float of 7.7% with 6.51 days to cover. Shares are up 14.1% year to date as of the close of trading on Friday.
rates IAC/InterActiveCorp as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, robust revenue growth, attractive valuation levels, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 34.5% when compared to the same quarter one year prior, rising from $43.33 million to $58.29 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 22.7%. Since the same quarter one year prior, revenues rose by 17.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for IAC/INTERACTIVECORP is rather high; currently it is at 65.87%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, IACI's net profit margin of 7.29% significantly trails the industry average.
- IAC/INTERACTIVECORP has improved earnings per share by 32.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IAC/INTERACTIVECORP reported lower earnings of $1.81 versus $1.88 in the prior year. This year, the market expects an improvement in earnings ($3.88 versus $1.81).
- You can view the full IAC/InterActiveCorp Ratings Report.