Trade-Ideas LLC identified

Ingredion

(

INGR

) 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 Ingredion as such a stock due to the following factors:

  • INGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.9 million.
  • INGR has traded 62,348 shares today.
  • INGR traded in a range 319% of the normal price range with a price range of $6.97.
  • INGR traded above its daily resistance level (quality: 41 days, meaning that the stock is crossing a resistance level set by the last 41 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 INGR:

TheStreet Recommends

Ingredion Incorporated, together with its subsidiaries, manufactures and sells starches and sweeteners to various industries. The stock currently has a dividend yield of 2%. INGR has a PE ratio of 41. Currently there is 1 analyst that rates Ingredion a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Ingredion has been 406,900 shares per day over the past 30 days. Ingredion has a market cap of $6.5 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.03 and a short float of 2% with 2.72 days to cover. Shares are down 5.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ingredion as a

buy

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Net operating cash flow has remained constant at $233.00 million with no significant change when compared to the same quarter last year. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -16.93%.
  • Compared to where it was trading a year ago, INGR's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • INGREDION INC's earnings per share declined by 7.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, INGREDION INC reported lower earnings of $4.74 versus $5.06 in the prior year. This year, the market expects an improvement in earnings ($5.85 versus $4.74).
  • INGR, with its decline in revenue, slightly underperformed the industry average of 3.3%. Since the same quarter one year prior, revenues slightly dropped by 1.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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