Trade-Ideas LLC identified

Verint Systems

(

VRNT

) 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 Verint Systems as such a stock due to the following factors:

  • VRNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.4 million.
  • VRNT has traded 229,390 shares today.
  • VRNT traded in a range 210.1% of the normal price range with a price range of $3.26.
  • VRNT traded above its daily resistance level (quality: 1 day, meaning that the stock is crossing a resistance level set by the last 1 calendar day. 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 VRNT:

Verint Systems Inc. provides actionable intelligence solutions and value-added services worldwide. The company operates through three segments: Enterprise Intelligence Solutions, Communications and Cyber Intelligence Solutions, and Video and Situation Intelligence Solutions. VRNT has a PE ratio of 49. Currently there are 7 analysts that rate Verint Systems a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Verint Systems has been 623,700 shares per day over the past 30 days. Verint Systems has a market cap of $2.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.46 and a short float of 4.8% with 4.12 days to cover. Shares are down 15.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Verint Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • VRNT's revenue growth has slightly outpaced the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 0.5%. 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.
  • VRNT's debt-to-equity ratio of 0.70 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that VRNT's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.52 is high and demonstrates strong liquidity.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, VERINT SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.69%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 29.41% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, VRNT is still more expensive than most of the other companies in its industry.

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