Barbarian At The Gate: Jones Lang LaSalle (JLL)

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 Jones Lang LaSalle ( JLL) 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 Jones Lang LaSalle as such a stock due to the following factors:

  • JLL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.4 million.
  • JLL has traded 343,432 shares today.
  • JLL traded in a range 554.3% of the normal price range with a price range of $7.88.
  • JLL traded above its daily resistance level (quality: 91 days, meaning that the stock is crossing a resistance level set by the last 91 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 JLL:

Jones Lang LaSalle Incorporated, a financial and professional services firm, provides integrated real estate and investment management services to owner, occupier, investor, developer clients worldwide. The stock currently has a dividend yield of 0.5%. JLL has a PE ratio of 18.0. Currently there are 2 analysts that rate Jones Lang LaSalle a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Jones Lang LaSalle has been 347,600 shares per day over the past 30 days. Jones Lang LaSalle has a market cap of $3.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 2.05 and a short float of 1.8% with 2.50 days to cover. Shares are up 3% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Jones Lang LaSalle as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 19.6%. Since the same quarter one year prior, revenues slightly increased by 7.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • JONES LANG LASALLE INC has improved earnings per share by 24.1% 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, JONES LANG LASALLE INC increased its bottom line by earning $4.62 versus $3.69 in the prior year. This year, the market expects an improvement in earnings ($6.00 versus $4.62).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Real Estate Management & Development industry average. The net income increased by 24.3% when compared to the same quarter one year prior, going from $37.44 million to $46.53 million.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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