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 MetLife ( MET) 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 MetLife as such a stock due to the following factors:
- MET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $286.8 million.
- MET has traded 232,170 shares today.
- MET traded in a range 214.8% of the normal price range with a price range of $1.82.
- MET traded above its daily resistance level (quality: 16 days, meaning that the stock is crossing a resistance level set by the last 16 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 MET with the Ticky from Trade-Ideas. See the FREE profile for MET NOW at Trade-Ideas More details on MET: MetLife, Inc., through its subsidiaries, provides insurance, annuities, and employee benefit programs in the United States, Japan, Latin America, the Middle East, Asia, and Europe. The stock currently has a dividend yield of 2.3%. MET has a PE ratio of 109.0. Currently there are 14 analysts that rate MetLife a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for MetLife has been 6.0 million shares per day over the past 30 days. MetLife has a market cap of $52.6 billion and is part of the financial sector and insurance industry. The stock has a beta of 2.25 and a short float of 2.7% with 4.13 days to cover. Shares are up 45.6% 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 MetLife as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 201.9% when compared to the same quarter one year prior, rising from -$954.00 million to $972.00 million.
- Powered by its strong earnings growth of 191.30% and other important driving factors, this stock has surged by 33.30% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- METLIFE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, METLIFE INC reported lower earnings of $1.09 versus $5.76 in the prior year. This year, the market expects an improvement in earnings ($5.65 versus $1.09).
- Despite the weak revenue results, MET has outperformed against the industry average of 12.9%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.42, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- You can view the full MetLife 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.