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 or Stephanie Link.
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 Thomson Reuters as such a stock due to the following factors:
- TRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.7 million.
- TRI has traded 141,763 shares today.
- TRI traded in a range 200.6% of the normal price range with a price range of $0.71.
- TRI traded above its daily resistance level (quality: 189 days, meaning that the stock is crossing a resistance level set by the last 189 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 TRI:
Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company sells electronic content and services to professionals, primarily on a subscription basis. The stock currently has a dividend yield of 3.6%. TRI has a PE ratio of 69.9. Currently there are 5 analysts that rate Thomson Reuters a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Thomson Reuters has been 739,300 shares per day over the past 30 days. Thomson Reuters has a market cap of $30.1 billion and is part of the services sector and media industry. Shares are down 2.4% year-to-date as of the close of trading on Tuesday.
rates Thomson Reuters as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 1009.7% when compared to the same quarter one year prior, rising from -$31.00 million to $282.00 million.
- The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that TRI's debt-to-equity ratio is low, the quick ratio, which is currently 0.59, displays a potential problem in covering short-term cash needs.
- TRI, with its decline in revenue, underperformed when compared the industry average of 12.5%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for THOMSON-REUTERS CORP is currently lower than what is desirable, coming in at 25.78%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 9.00% trails that of the industry average.
- Net operating cash flow has declined marginally to $113.00 million or 2.58% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, THOMSON-REUTERS CORP has marginally lower results.
- You can view the full Thomson Reuters Ratings Report.