Trade-Ideas LLC identified

StanCorp Financial Group

(

SFG

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

  • SFG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.5 million.
  • SFG has traded 116,732 shares today.
  • SFG traded in a range 250.4% of the normal price range with a price range of $0.82.
  • SFG traded above its daily resistance level (quality: 9 days, meaning that the stock is crossing a resistance level set by the last 9 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 SFG:

StanCorp Financial Group, Inc., through its subsidiaries, provides financial products and services in the United States. The company operates in two segments, Insurance Services and Asset Management. The stock currently has a dividend yield of 1.2%. SFG has a PE ratio of 21. Currently there are no analysts that rate StanCorp Financial Group a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for StanCorp Financial Group has been 263,700 shares per day over the past 30 days. StanCorp Financial Group has a market cap of $4.8 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.91 and a short float of 1% with 2.26 days to cover. Shares are up 62.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates StanCorp Financial Group as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 15.4%. Since the same quarter one year prior, revenues slightly increased by 4.4%. 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.
  • Although SFG's debt-to-equity ratio of 0.22 is very low, it is currently higher than that of the industry average.
  • Compared to its closing price of one year ago, SFG's share price has jumped by 65.53%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SFG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 134.96% to $105.50 million when compared to the same quarter last year. In addition, STANCORP FINANCIAL GROUP INC has also vastly surpassed the industry average cash flow growth rate of -15.87%.
  • 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 Insurance industry and the overall market on the basis of return on equity, STANCORP FINANCIAL GROUP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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