Trade-Ideas LLC identified

Wolverine World Wide

(

WWW

) 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 Wolverine World Wide as such a stock due to the following factors:

  • WWW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.3 million.
  • WWW has traded 419,267 shares today.
  • WWW traded in a range 227.7% of the normal price range with a price range of $1.34.
  • WWW traded above its daily resistance level (quality: 311 days, meaning that the stock is crossing a resistance level set by the last 311 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 WWW:

Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories. The company operates through Lifestyle Group, Performance Group, and Heritage Group segments. The stock currently has a dividend yield of 1.1%. WWW has a PE ratio of 22. Currently there are 3 analysts that rate Wolverine World Wide a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Wolverine World Wide has been 1.1 million shares per day over the past 30 days. Wolverine World Wide has a market cap of $2.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.67 and a short float of 5.7% with 4.60 days to cover. Shares are up 33.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Wolverine World Wide as a

buy

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins 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:

  • 41.98% is the gross profit margin for WOLVERINE WORLD WIDE which we consider to be strong. Regardless of WWW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.01% trails the industry average.
  • WOLVERINE WORLD WIDE has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, WOLVERINE WORLD WIDE reported lower earnings of $1.19 versus $1.30 in the prior year. This year, the market expects an improvement in earnings ($1.36 versus $1.19).
  • WWW, with its decline in revenue, underperformed when compared the industry average of 7.1%. Since the same quarter one year prior, revenues slightly dropped by 8.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • WWW's debt-to-equity ratio of 0.89 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.49 is sturdy.

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