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.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Wyndham Worldwide as such a stock due to the following factors:
- WYN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $100.3 million.
- WYN has traded 2.3 million shares today.
- WYN traded in a range 216.7% of the normal price range with a price range of $3.30.
- WYN traded below its daily resistance level (quality: 168 days, meaning that the stock is crossing a resistance level set by the last 168 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on WYN:
Wyndham Worldwide Corporation provides hospitality services and products to individual consumers and business customers worldwide. It operates three in segments: Lodging, Vacation Exchange, and Rentals, and Vacation Ownership. The stock currently has a dividend yield of 2%. WYN has a PE ratio of 19. Currently there are 4 analysts that rate Wyndham Worldwide a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Wyndham Worldwide has been 988,500 shares per day over the past 30 days. Wyndham Worldwide has a market cap of $10.0 billion and is part of the services sector and leisure industry. The stock has a beta of 1.26 and a short float of 4.5% with 4.32 days to cover. Shares are down 4.8% year-to-date as of the close of trading on Monday.
rates Wyndham Worldwide as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 5.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
- WYNDHAM WORLDWIDE CORP has improved earnings per share by 44.9% 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, WYNDHAM WORLDWIDE CORP increased its bottom line by earning $4.18 versus $3.22 in the prior year. This year, the market expects an improvement in earnings ($4.96 versus $4.18).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 35.5% when compared to the same quarter one year prior, rising from $90.00 million to $122.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, WYNDHAM WORLDWIDE CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Wyndham Worldwide Ratings Report.