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 URS as such a stock due to the following factors:
- URS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $108.2 million.
- URS has traded 61,545 shares today.
- URS traded in a range 201.3% of the normal price range with a price range of $1.11.
- URS traded above its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 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 URS:
URS Corporation provides engineering, construction, and technical services to public agencies and private sector clients worldwide. The stock currently has a dividend yield of 1.5%. URS has a PE ratio of 21.1. Currently there is 1 analyst that rates URS a buy, 1 analyst rates it a sell, and 10 rate it a hold.
The average volume for URS has been 1.4 million shares per day over the past 30 days. URS has a market cap of $4.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.28 and a short float of 10.1% with 3.64 days to cover. Shares are up 8.6% year-to-date as of the close of trading on Monday.
rates URS as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, URS has a quick ratio of 1.87, 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.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.4%. Since the same quarter one year prior, revenues slightly dropped by 9.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- URS 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, URS CORP reported lower earnings of $3.33 versus $4.17 in the prior year. For the next year, the market is expecting a contraction of 3.9% in earnings ($3.20 versus $3.33).
- 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 Construction & Engineering industry. The net income has significantly decreased by 62.4% when compared to the same quarter one year ago, falling from $71.90 million to $27.00 million.
- You can view the full URS Ratings Report.