Trade-Ideas LLC identified

Principal Financial Group

(

PFG

) 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 Principal Financial Group as such a stock due to the following factors:

  • PFG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.0 million.
  • PFG has traded 123,962 shares today.
  • PFG traded in a range 228.8% of the normal price range with a price range of $1.54.
  • PFG traded above its daily resistance level (quality: 224 days, meaning that the stock is crossing a resistance level set by the last 224 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 PFG:

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. It operates through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. The stock currently has a dividend yield of 3.5%. PFG has a PE ratio of 11. Currently there is 1 analyst that rates Principal Financial Group a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Principal Financial Group has been 1.5 million shares per day over the past 30 days. Principal Financial Group has a market cap of $12.9 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.73 and a short float of 1.6% with 4.78 days to cover. Shares are down 0.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Principal Financial Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 14.2%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $895.50 million or 41.94% when compared to the same quarter last year. In addition, PRINCIPAL FINANCIAL GRP INC has also vastly surpassed the industry average cash flow growth rate of -25.55%.
  • PRINCIPAL FINANCIAL GRP INC's earnings per share declined by 10.1% 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, PRINCIPAL FINANCIAL GRP INC increased its bottom line by earning $4.07 versus $3.66 in the prior year. This year, the market expects an improvement in earnings ($4.25 versus $4.07).
  • Despite currently having a low debt-to-equity ratio of 0.34, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Insurance industry average, but is less than that of the S&P 500. The net income has decreased by 12.9% when compared to the same quarter one year ago, dropping from $422.40 million to $368.00 million.

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