Trade-Ideas LLC identified

Vantiv

(

VNTV

) 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 Vantiv as such a stock due to the following factors:

  • VNTV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $59.7 million.
  • VNTV has traded 207,491 shares today.
  • VNTV traded in a range 291.5% of the normal price range with a price range of $2.00.
  • VNTV traded below its daily resistance level (quality: 21 days, meaning that the stock is crossing a resistance level set by the last 21 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.

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More details on VNTV:

Vantiv, Inc., through its subsidiary, Vantiv Holding, LLC, provides electronic payment processing services to merchants and financial institutions in the United States. It operates in two segments, Merchant Services and Financial Institution Services. VNTV has a PE ratio of 56. Currently there are 15 analysts that rate Vantiv a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Vantiv has been 1.5 million shares per day over the past 30 days. Vantiv has a market cap of $11.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.67 and a short float of 2.1% with 2.85 days to cover. Shares are up 23.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vantiv as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel its 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:

  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 16.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VANTIV INC reported significant earnings per share improvement 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, VANTIV INC increased its bottom line by earning $0.95 versus $0.72 in the prior year. This year, the market expects an improvement in earnings ($2.64 versus $0.95).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 109.3% when compared to the same quarter one year prior, rising from $18.99 million to $39.74 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the IT Services industry and the overall market on the basis of return on equity, VANTIV INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Powered by its strong earnings growth of 92.30% and other important driving factors, this stock has surged by 45.56% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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