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 MetLife as such a stock due to the following factors:
- MET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $265.3 million.
- MET has traded 2.5 million shares today.
- MET traded in a range 204.8% of the normal price range with a price range of $2.17.
- MET traded above its daily resistance level (quality: 76 days, meaning that the stock is crossing a resistance level set by the last 76 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 MET:
MetLife, Inc. provides life insurance, annuities, employee benefits, and asset management products in the United States, Japan, Latin America, Asia, Europe, and the Middle East. The stock currently has a dividend yield of 3.4%. MET has a PE ratio of 1. Currently there are 11 analysts that rate MetLife a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for MetLife has been 8.3 million shares per day over the past 30 days. MetLife has a market cap of $47.2 billion and is part of the financial sector and insurance industry. Shares are down 11.9% year-to-date as of the close of trading on Tuesday.
rates MetLife as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 19.3%. Since the same quarter one year prior, revenues fell by 11.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- METLIFE INC's earnings per share declined by 46.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, METLIFE INC reported lower earnings of $4.55 versus $5.42 in the prior year. This year, the market expects an improvement in earnings ($5.70 versus $4.55).
- The share price of METLIFE INC has not done very well: it is down 14.47% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- You can view the full MetLife Ratings Report.