Trade-Ideas: Stifel Financial (SF) Is Today's "Barbarian At The Gate" Stock
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 Stifel Financial as such a stock due to the following factors:
- SF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.5 million.
- SF has traded 453,862 shares today.
- SF traded in a range 261.6% of the normal price range with a price range of $2.59.
- SF traded above its daily resistance level (quality: 10 days, meaning that the stock is crossing a resistance level set by the last 10 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SF with the Ticky from Trade-Ideas. See the FREE profile for SF NOW at Trade-Ideas
More details on SF:
Stifel Financial Corp. SF has a PE ratio of 27. Currently there are no analysts that rate Stifel Financial a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Stifel Financial has been 746,200 shares per day over the past 30 days. Stifel Financial has a market cap of $2.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.45 and a short float of 5.5% with 5.15 days to cover. Shares are down 26.2% year-to-date as of the close of trading on Friday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Stifel Financial as a
. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 24.6%. Since the same quarter one year prior, revenues slightly increased by 0.6%. 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.
- STIFEL FINANCIAL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, STIFEL FINANCIAL CORP reported lower earnings of $1.19 versus $2.35 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $1.19).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 75.3% when compared to the same quarter one year ago, falling from $45.18 million to $11.17 million.
- The gross profit margin for STIFEL FINANCIAL CORP is currently extremely low, coming in at 13.06%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.87% significantly trails the industry average.
- Net operating cash flow has significantly decreased to -$378.07 million or 224.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Stifel Financial Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
