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 Symantec ( SYMC) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Symantec as such a stock due to the following factors:
- SYMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $176.9 million.
- SYMC has traded 11.8 million shares today.
- SYMC is trading at 2.41 times the normal volume for the stock at this time of day.
- SYMC crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success. EXCLUSIVE OFFER: Get the inside scoop on opportunities in SYMC with the Ticky from Trade-Ideas. See the FREE profile for SYMC NOW at Trade-Ideas More details on SYMC: Symantec Corporation and its subsidiaries provide security, backup, and availability solutions worldwide. Its products and services protect people and information in any digital environment from mobile devices, enterprise data centers, and cloud-based systems. The stock currently has a dividend yield of 2.6%. SYMC has a PE ratio of 19.9. Currently there are 9 analysts that rate Symantec a buy, 1 analyst rates it a sell, and 7 rate it a hold. The average volume for Symantec has been 7.0 million shares per day over the past 30 days. Symantec has a market cap of $15.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.98 and a short float of 1.8% with 1.74 days to cover. Shares are down 1.2% 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 Symantec as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Software industry average. The net income increased by 27.5% when compared to the same quarter one year prior, rising from $189.00 million to $241.00 million.
- Net operating cash flow has slightly increased to $191.00 million or 7.30% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.95%.
- 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- SYMANTEC CORP has improved earnings per share by 25.9% 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, SYMANTEC CORP reported lower earnings of $1.05 versus $1.57 in the prior year. This year, the market expects an improvement in earnings ($1.77 versus $1.05).
- You can view the full Symantec 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.