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 Wyndham Worldwide Corporation as such a stock due to the following factors:
- WYN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.4 million.
- WYN has traded 299,401 shares today.
- WYN traded in a range 219.1% of the normal price range with a price range of $2.06.
- WYN traded above its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 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 WYN:
Wyndham Worldwide Corporation, together with its subsidiaries, provides various hospitality services and products to individual consumers and business customers in the United States and internationally. The stock currently has a dividend yield of 1.9%. WYN has a PE ratio of 21.1. Currently there are 6 analysts that rate Wyndham Worldwide Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Wyndham Worldwide Corporation has been 1.2 million shares per day over the past 30 days. Wyndham Worldwide has a market cap of $8.0 billion and is part of the services sector and leisure industry. Shares are up 10.6% year to date as of the close of trading on Wednesday.
rates Wyndham Worldwide Corporation as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- WYN's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 10.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
- WYNDHAM WORLDWIDE CORP has improved earnings per share by 11.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WYNDHAM WORLDWIDE CORP increased its bottom line by earning $2.77 versus $2.53 in the prior year. This year, the market expects an improvement in earnings ($3.76 versus $2.77).
- Net operating cash flow has increased to $484.00 million or 15.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.26%.
- You can view the full Wyndham Worldwide Corporation Ratings Report.