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.
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 Steven Madden as such a stock due to the following factors:
- SHOO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.1 million.
- SHOO has traded 54,575 shares today.
- SHOO traded in a range 332.4% of the normal price range with a price range of $3.04.
- SHOO traded above its daily resistance level (quality: 530 days, meaning that the stock is crossing a resistance level set by the last 530 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 SHOO:
Steven Madden, Ltd. designs, sources, markets, and sells fashion-forward name brand and private label footwear for women, men, and children. SHOO has a PE ratio of 24. Currently there are 5 analysts that rate Steven Madden a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Steven Madden has been 478,400 shares per day over the past 30 days. Steven Madden has a market cap of $2.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.75 and a short float of 5% with 4.77 days to cover. Shares are up 31.1% year-to-date as of the close of trading on Wednesday.
rates Steven Madden as a
. 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, reasonable valuation levels 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:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 6.5%. 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.
- SHOO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, SHOO has a quick ratio of 1.76, which demonstrates the ability of the company to cover short-term liquidity needs.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings 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.
- MADDEN STEVEN LTD's earnings per share declined by 11.1% 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 two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, MADDEN STEVEN LTD reported lower earnings of $1.77 versus $1.98 in the prior year. This year, the market expects an improvement in earnings ($1.93 versus $1.77).
- You can view the full Steven Madden Ratings Report.