Trade-Ideas LLC identified

Verisk Analytics

(

VRSK

) 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 Verisk Analytics as such a stock due to the following factors:

  • VRSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $107.6 million.
  • VRSK has traded 782,438 shares today.
  • VRSK traded in a range 234.2% of the normal price range with a price range of $4.24.
  • VRSK traded above its daily resistance level (quality: 22 days, meaning that the stock is crossing a resistance level set by the last 22 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 VRSK:

Verisk Analytics, Inc. provides information about risk to professionals in insurance, healthcare, financial services, government, supply chain, and risk management in the United States and internationally. VRSK has a PE ratio of 22. Currently there are 10 analysts that rate Verisk Analytics a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Verisk Analytics has been 1.3 million shares per day over the past 30 days. Verisk Analytics has a market cap of $11.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.63 and a short float of 5.1% with 4.85 days to cover. Shares are down 11.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Verisk Analytics 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, expanding profit margins and good cash flow from operations. 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 3.3%. Since the same quarter one year prior, revenues rose by 22.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VERISK ANALYTICS INC has improved earnings per share by 32.8% 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, VERISK ANALYTICS INC increased its bottom line by earning $2.19 versus $1.97 in the prior year. This year, the market expects an improvement in earnings ($3.01 versus $2.19).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Professional Services industry average. The net income increased by 33.1% when compared to the same quarter one year prior, rising from $99.02 million to $131.81 million.
  • The gross profit margin for VERISK ANALYTICS INC is rather high; currently it is at 61.82%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.94% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 79.24% to $164.54 million when compared to the same quarter last year. In addition, VERISK ANALYTICS INC has also vastly surpassed the industry average cash flow growth rate of 13.23%.

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