Barbarian At The Gate: PVH (PVH)

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 PVH ( PVH) 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 PVH as such a stock due to the following factors:

  • PVH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.7 million.
  • PVH has traded 463,308 shares today.
  • PVH traded in a range 244.2% of the normal price range with a price range of $5.20.
  • PVH 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 PVH:

PVH Corp. operates as an apparel company in the United States and internationally. Currently there are 7 analysts that rate PVH a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for PVH has been 906,100 shares per day over the past 30 days. PVH has a market cap of $10.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.01 and a short float of 2.4% with 3.38 days to cover.

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 PVH as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 7.0%. Since the same quarter one year prior, revenues rose by 47.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for PVH CORP is rather high; currently it is at 58.57%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.81% is in-line with the industry average.
  • PVH CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, PVH CORP increased its bottom line by earning $5.87 versus $4.36 in the prior year. This year, the market expects an improvement in earnings ($7.05 versus $5.87).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Net operating cash flow has decreased to $178.99 million or 13.86% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, PVH CORP has marginally lower results.

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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