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 Zebra Technologies as such a stock due to the following factors:
- ZBRA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.1 million.
- ZBRA has traded 1.3 million shares today.
- ZBRA traded in a range 345.2% of the normal price range with a price range of $10.71.
- ZBRA traded below its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 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 ZBRA:
Zebra Technologies Corporation designs, manufactures, sells, and supports a range of printers and supplies worldwide. Currently there are 8 analysts that rate Zebra Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Zebra Technologies has been 748,100 shares per day over the past 30 days. Zebra has a market cap of $3.0 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.53 and a short float of 7.6% with 5.87 days to cover. Shares are down 20% year-to-date as of the close of trading on Thursday.
rates Zebra Technologies as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the ratings report include:
- ZBRA's very impressive revenue growth greatly exceeded the industry average of 2.0%. Since the same quarter one year prior, revenues leaped by 202.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 387.47% to $96.35 million when compared to the same quarter last year. In addition, ZEBRA TECHNOLOGIES CP has also vastly surpassed the industry average cash flow growth rate of 10.19%.
- 47.38% is the gross profit margin for ZEBRA TECHNOLOGIES CP which we consider to be strong. Regardless of ZBRA'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 -3.15% trails the industry average.
- The debt-to-equity ratio is very high at 3.33 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, ZBRA maintains a poor quick ratio of 1.00, which illustrates the inability to avoid short-term cash problems.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ZEBRA TECHNOLOGIES CP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Zebra Technologies Ratings Report.