Trade-Ideas LLC identified

Tyler Technologies

(

TYL

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tyler Technologies as such a stock due to the following factors:

  • TYL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.8 million.
  • TYL has traded 62,911 shares today.
  • TYL traded in a range 270.2% of the normal price range with a price range of $7.87.
  • TYL traded below its daily resistance level (quality: 29 days, meaning that the stock is crossing a resistance level set by the last 29 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TYL with the Ticky from Trade-Ideas. See the FREE profile for TYL NOW at Trade-Ideas

More details on TYL:

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector with a focus on local governments in the United States and internationally. TYL has a PE ratio of 67. Currently there are 9 analysts that rate Tyler Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Tyler Technologies has been 342,500 shares per day over the past 30 days. Tyler has a market cap of $6.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.05 and a short float of 7.2% with 10.19 days to cover. Shares are down 5.1% year-to-date as of the close of trading on Wednesday.

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.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tyler Technologies as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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:

  • The revenue growth greatly exceeded the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 32.8%. 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.
  • Net operating cash flow has significantly increased by 2022.19% to $40.27 million when compared to the same quarter last year. In addition, TYLER TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of 22.08%.
  • The gross profit margin for TYLER TECHNOLOGIES INC is rather high; currently it is at 50.72%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.52% trails the industry average.
  • TYLER TECHNOLOGIES INC's earnings per share declined by 8.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TYLER TECHNOLOGIES INC increased its bottom line by earning $1.78 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($3.41 versus $1.78).
  • TYL's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.70 is somewhat weak and could be cause for future problems.

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.