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 VeriSign as such a stock due to the following factors:
- VRSN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.4 million.
- VRSN has traded 89,209 shares today.
- VRSN traded in a range 241.5% of the normal price range with a price range of $2.75.
- VRSN traded above its daily resistance level (quality: 17 days, meaning that the stock is crossing a resistance level set by the last 17 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 VRSN:
VeriSign, Inc. provides domain name registry services and Internet security worldwide. The company offers registry services that operate the authoritative directory of .com, .net, .cc, .tv, and .name domain names, as well as the back-end systems for .gov, .jobs, .edu, and other domain names. VRSN has a PE ratio of 28. Currently there are no analysts that rate VeriSign a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for VeriSign has been 723,000 shares per day over the past 30 days. VeriSign has a market cap of $9.1 billion and is part of the technology sector and internet industry. The stock has a beta of 1.14 and a short float of 29.3% with 22.72 days to cover. Shares are down 3.6% year-to-date as of the close of trading on Thursday.
rates VeriSign as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- 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 27.25% 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, VRSN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- VERISIGN INC has improved earnings per share by 24.2% 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 year. We feel that this trend should continue. During the past fiscal year, VERISIGN INC increased its bottom line by earning $2.82 versus $2.52 in the prior year. This year, the market expects an improvement in earnings ($3.50 versus $2.82).
- VRSN's revenue growth trails the industry average of 20.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for VERISIGN INC is currently very high, coming in at 87.33%. Regardless of VRSN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VRSN's net profit margin of 38.12% significantly outperformed against the industry.
- Net operating cash flow has slightly increased to $143.63 million or 8.25% when compared to the same quarter last year. Despite an increase in cash flow, VERISIGN INC's cash flow growth rate is still lower than the industry average growth rate of 19.28%.
- You can view the full VeriSign Ratings Report.