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 URS as such a stock due to the following factors:
- URS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.7 million.
- URS has traded 181,311 shares today.
- URS traded in a range 203.4% of the normal price range with a price range of $1.59.
- URS traded above its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 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 URS:
URS Corporation provides engineering, construction, and technical services to public agencies and private sector clients worldwide. The stock currently has a dividend yield of 1.6%. URS has a PE ratio of 17.4. Currently there are no analysts that rate URS a buy, 1 analyst rates it a sell, and 11 rate it a hold.
The average volume for URS has been 789,900 shares per day over the past 30 days. URS has a market cap of $3.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.99 and a short float of 1.3% with 0.86 days to cover. Shares are up 0.7% year-to-date as of the close of trading on Wednesday.
rates URS as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 30.8% when compared to the same quarter one year prior, rising from $67.30 million to $88.00 million.
- Net operating cash flow has significantly increased by 870.44% to $394.00 million when compared to the same quarter last year. In addition, URS CORP has also vastly surpassed the industry average cash flow growth rate of -14.50%.
- Despite currently having a low debt-to-equity ratio of 0.46, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that URS's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.73 is high and demonstrates strong liquidity.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full URS Ratings Report.