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 International Game Technology ( IGT) 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 International Game Technology as such a stock due to the following factors:
- IGT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.5 million.
- IGT has traded 6.3 million shares today.
- IGT traded in a range 238.8% of the normal price range with a price range of $1.30.
- IGT traded below its daily resistance level (quality: 28 days, meaning that the stock is crossing a resistance level set by the last 28 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in IGT with the Ticky from Trade-Ideas. See the FREE profile for IGT NOW at Trade-Ideas More details on IGT: International Game Technology engages in the design, development, manufacture, and marketing of casino games, gaming equipment, and systems technology for land-based and online social gaming, and wagering markets worldwide. The stock currently has a dividend yield of 2%. IGT has a PE ratio of 17.6. Currently there are 5 analysts that rate International Game Technology a buy, no analysts rate it a sell, and 10 rate it a hold. The average volume for International Game Technology has been 3.3 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 1.83 days to cover. Shares are up 37.8% year to date as of the close of trading on Tuesday. 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 International Game Technology as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and compelling growth 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:
- IGT's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 8.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 56.25% and other important driving factors, this stock has surged by 46.41% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IGT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, INTL GAME TECHNOLOGY's return on equity exceeds that of both the industry average and the S&P 500.
- 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 41.0% when compared to the same quarter one year prior, rising from $46.60 million to $65.70 million.
- You can view the full International Game Technology 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.