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 CoreLogic as such a stock due to the following factors:
- CLGX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.3 million.
- CLGX has traded 635,870 shares today.
- CLGX traded in a range 317.7% of the normal price range with a price range of $1.72.
- CLGX traded above its daily resistance level (quality: 83 days, meaning that the stock is crossing a resistance level set by the last 83 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 CLGX:
CoreLogic, Inc. provides property, financial and consumer information, analytics, and services in the United States and Australia. The company operates through three segments: Data and Analytics, Mortgage Origination Services, and Asset Management and Processing Solutions. The stock currently has a dividend yield of 5%. CLGX has a PE ratio of 19.9. Currently there are 4 analysts that rate CoreLogic a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for CoreLogic has been 908,100 shares per day over the past 30 days. CoreLogic has a market cap of $2.6 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.42 and a short float of 1.2% with 1.43 days to cover. Shares are down 0.7% year to date as of the close of trading on Friday.
rates CoreLogic as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 19.8%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CORELOGIC INC has improved earnings per share by 17.9% 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, CORELOGIC INC increased its bottom line by earning $1.18 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($1.78 versus $1.18).
- 46.40% is the gross profit margin for CORELOGIC INC which we consider to be strong. 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 10.19% trails the industry average.
- The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.91 is somewhat weak and could be cause for future problems.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the IT Services industry and the overall market, CORELOGIC INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full CoreLogic Ratings Report.