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 Altria Group ( MO) 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 Altria Group as such a stock due to the following factors:
- MO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $291.3 million.
- MO has traded 9.3 million shares today.
- MO traded in a range 200.9% of the normal price range with a price range of $0.78.
- MO traded above its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in MO with the Ticky from Trade-Ideas. See the FREE profile for MO NOW at Trade-Ideas More details on MO: Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. The stock currently has a dividend yield of 5.3%. MO has a PE ratio of 15.3. Currently there are 6 analysts that rate Altria Group a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for Altria Group has been 9.3 million shares per day over the past 30 days. Altria Group has a market cap of $67.1 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.36 and a short float of 0.8% with 2.00 days to cover. Shares are up 6.4% year to date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Altria Group as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity, expanding profit margins, good cash flow from operations and increase in net income. We feel these 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:
- ALTRIA GROUP INC has improved earnings per share by 5.0% 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, ALTRIA GROUP INC increased its bottom line by earning $2.06 versus $1.64 in the prior year. This year, the market expects an improvement in earnings ($2.39 versus $2.06).
- 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 Tobacco industry and the overall market, ALTRIA GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for ALTRIA GROUP INC is rather high; currently it is at 57.47%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.97% is above that of the industry average.
- Net operating cash flow has increased to -$1,223.00 million or 36.36% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.59%.
- The net income growth from the same quarter one year ago has exceeded that of the Tobacco industry average, but is less than that of the S&P 500. The net income increased by 3.3% when compared to the same quarter one year prior, going from $1,225.00 million to $1,266.00 million.
- You can view the full Altria Group Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.