Trade-Ideas LLC identified

Jarden

(

JAH

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

  • JAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.7 million.
  • JAH has traded 915,046 shares today.
  • JAH traded in a range 220.4% of the normal price range with a price range of $2.41.
  • JAH traded below its daily resistance level (quality: 34 days, meaning that the stock is crossing a resistance level set by the last 34 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 JAH:

Jarden Corporation manufactures, markets, and distributes consumer products worldwide. JAH has a PE ratio of 44. Currently there are 12 analysts that rate Jarden a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Jarden has been 2.0 million shares per day over the past 30 days. Jarden has a market cap of $10.7 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.54 and a short float of 4.7% with 5.48 days to cover. Shares are up 7.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Jarden as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, revenue growth, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • JARDEN CORP reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, JARDEN CORP increased its bottom line by earning $1.29 versus $1.21 in the prior year. This year, the market expects an improvement in earnings ($2.76 versus $1.29).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Household Durables industry average. The net income increased by 64.9% when compared to the same quarter one year prior, rising from $52.10 million to $85.90 million.
  • JAH's revenue growth trails the industry average of 12.5%. Since the same quarter one year prior, revenues slightly increased by 1.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 57.14% and other important driving factors, this stock has surged by 25.17% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • 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. In comparison to the other companies in the Household Durables industry and the overall market, JARDEN CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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