IntercontinentalExchange Group (ICE) Falls Further As It's Water-Logged And Getting Wetter

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 IntercontinentalExchange Group ( ICE) 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 IntercontinentalExchange Group as such a stock due to the following factors:

  • ICE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.7 million.
  • ICE has traded 531,616 shares today.
  • ICE traded in a range 210.9% of the normal price range with a price range of $6.62.
  • ICE traded below its daily resistance level (quality: 40 days, meaning that the stock is crossing a resistance level set by the last 40 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.

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More details on ICE:

IntercontinentalExchange Group, Inc., through its subsidiaries, operates a network of regulated exchanges and clearing houses for financial and commodity markets primarily in the United States, the United Kingdom, Canada, Europe, and Brazil. Currently there are 11 analysts that rate IntercontinentalExchange Group a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for IntercontinentalExchange Group has been 841,500 shares per day over the past 30 days. IntercontinentalExchange Group has a market cap of $16.1 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.92 and a short float of 1.6% with 1.64 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 IntercontinentalExchange Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • 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 78.30% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ICE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • INTERCONTINENTALEXCHANGE GRP has improved earnings per share by 7.3% 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, INTERCONTINENTALEXCHANGE GRP increased its bottom line by earning $7.52 versus $6.91 in the prior year. This year, the market expects an improvement in earnings ($8.21 versus $7.52).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.4%. Since the same quarter one year prior, revenues slightly increased by 4.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for INTERCONTINENTALEXCHANGE GRP is currently very high, coming in at 80.85%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 41.82% significantly outperformed against the industry average.

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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