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 Newell Rubbermaid as such a stock due to the following factors:
- NWL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.8 million.
- NWL has traded 104,344 shares today.
- NWL traded in a range 200.5% of the normal price range with a price range of $0.82.
- NWL traded above its daily resistance level (quality: 2 days, meaning that the stock is crossing a resistance level set by the last 2 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 NWL:
Newell Rubbermaid Inc. designs, manufactures, and markets consumer and commercial products worldwide. It operates in five segments: Commercial Products, Tools, Writing, Home Solutions, and Baby & Parenting. The stock currently has a dividend yield of 2%. NWL has a PE ratio of 21.7. Currently there are 9 analysts that rate Newell Rubbermaid a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Newell Rubbermaid has been 1.8 million shares per day over the past 30 days. Newell Rubbermaid has a market cap of $8.7 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.46 and a short float of 5.1% with 8.30 days to cover. Shares are up 36.6% year to date as of the close of trading on Wednesday.
rates Newell Rubbermaid as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- NWL's revenue growth trails the industry average of 28.9%. Since the same quarter one year prior, revenues slightly increased by 2.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 42.55% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NWL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- NEWELL RUBBERMAID INC has improved earnings per share by 16.7% 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, NEWELL RUBBERMAID INC increased its bottom line by earning $1.34 versus $0.45 in the prior year. This year, the market expects an improvement in earnings ($1.83 versus $1.34).
- Net operating cash flow has increased to $360.80 million or 19.66% when compared to the same quarter last year. Despite an increase in cash flow of 19.66%, NEWELL RUBBERMAID INC is still growing at a significantly lower rate than the industry average of 86.68%.
- The debt-to-equity ratio is somewhat low, currently at 0.78, 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 0.87 is somewhat weak and could be cause for future problems.
- You can view the full Newell Rubbermaid Ratings Report.