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 NCR Corporation ( NCR) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified NCR Corporation as such a stock due to the following factors:
- NCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $162.5 million.
- NCR has a PE ratio of 42.0.
- NCR is currently in the upper 30% of its 1-year range.
- NCR is in the upper 25% of its 20-day range.
- NCR is in the upper 35% of its 5-day range.
- NCR is currently trading above yesterday's high.
- NCR has experienced a gap between today's open and yesterday's close of 0.3%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills. EXCLUSIVE OFFER: Get the inside scoop on opportunities in NCR with the Ticky from Trade-Ideas. See the FREE profile for NCR NOW at Trade-Ideas More details on NCR: NCR Corporation provides technology and services that enable businesses connect, interact, and transact with their customers worldwide. The company operates in four segments: Financial Services, Retail Solutions, Hospitality, and Emerging Industries. NCR has a PE ratio of 42.0. Currently there are 4 analysts that rate NCR Corporation a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for NCR Corporation has been 1.6 million shares per day over the past 30 days. The stock has a beta of 1.37 and a short float of 3.2% with 1.58 days to cover. Shares are up 41.5% year to date as of the close of trading on Friday. 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 NCR Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- NCR's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- NCR CORP has improved earnings per share by 9.4% 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, NCR CORP increased its bottom line by earning $1.29 versus $0.91 in the prior year. This year, the market expects an improvement in earnings ($2.79 versus $1.29).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Computers & Peripherals industry average, but is less than that of the S&P 500. The net income increased by 12.6% when compared to the same quarter one year prior, going from $87.00 million to $98.00 million.
- Net operating cash flow has significantly increased by 100.00% to $0.00 million when compared to the same quarter last year. In addition, NCR CORP has also vastly surpassed the industry average cash flow growth rate of 7.06%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 71.75% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full NCR Corporation 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.