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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 Roper Industries as such a stock due to the following factors:
- ROP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.3 million.
- ROP has traded 277,814 shares today.
- ROP traded in a range 214.1% of the normal price range with a price range of $3.19.
- ROP traded above its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 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 ROP:
Roper Industries, Inc. designs, manufactures, and distributes medical and scientific imaging products and software, radio frequency (RF) products, services and application software, industrial technology products, energy systems, and control products and solutions worldwide. The stock currently has a dividend yield of 0.6%. ROP has a PE ratio of 25.6. Currently there are 5 analysts that rate Roper Industries a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Roper Industries has been 414,100 shares per day over the past 30 days. Roper has a market cap of $14.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.88 and a short float of 1.5% with 3.12 days to cover. Shares are up 2.9% year-to-date as of the close of trading on Friday.
rates Roper Industries as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 12.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ROP has a quick ratio of 1.67, which demonstrates the ability of the company to cover short-term liquidity needs.
- ROPER INDUSTRIES INC/DE has improved earnings per share by 16.8% 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, ROPER INDUSTRIES INC/DE increased its bottom line by earning $5.37 versus $4.85 in the prior year. This year, the market expects an improvement in earnings ($6.30 versus $5.37).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Industrial Conglomerates industry average. The net income increased by 17.9% when compared to the same quarter one year prior, going from $124.91 million to $147.23 million.
- The gross profit margin for ROPER INDUSTRIES INC/DE is rather high; currently it is at 64.34%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.65% is above that of the industry average.
- You can view the full Roper Industries Ratings Report.