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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 Lincoln Electric Holdings as such a stock due to the following factors:
- LECO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.8 million.
- LECO has traded 775,512 shares today.
- LECO traded in a range 200.7% of the normal price range with a price range of $1.93.
- LECO traded above its daily resistance level (quality: 26 days, meaning that the stock is crossing a resistance level set by the last 26 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 LECO:
Lincoln Electric Holdings, Inc., through its subsidiaries, engages in the design, manufacture, and sale of welding, cutting, and brazing products worldwide. The stock currently has a dividend yield of 1.4%. LECO has a PE ratio of 19.6. Currently there are 2 analysts that rate Lincoln Electric Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Lincoln Electric Holdings has been 368,800 shares per day over the past 30 days. Lincoln Electric has a market cap of $5.4 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.09 and a short float of 2.1% with 4.71 days to cover. Shares are down 6.4% year-to-date as of the close of trading on Friday.
rates Lincoln Electric Holdings as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- LECO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.41, which illustrates the ability to avoid short-term cash problems.
- 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 Machinery industry and the overall market, LINCOLN ELECTRIC HLDGS INC's return on equity exceeds that of both the industry average and the S&P 500.
- 35.66% is the gross profit margin for LINCOLN ELECTRIC HLDGS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.24% is above that of the industry average.
- Net operating cash flow has significantly increased by 167.65% to $13.63 million when compared to the same quarter last year. In addition, LINCOLN ELECTRIC HLDGS INC has also vastly surpassed the industry average cash flow growth rate of -33.61%.
- LINCOLN ELECTRIC HLDGS INC's earnings per share declined by 13.8% 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, LINCOLN ELECTRIC HLDGS INC increased its bottom line by earning $3.54 versus $3.06 in the prior year. This year, the market expects an improvement in earnings ($3.66 versus $3.54).
- You can view the full Lincoln Electric Holdings Ratings Report.