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 Micros Systems ( MCRS) 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 Micros Systems as such a stock due to the following factors:
- MCRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.8 million.
- MCRS has traded 233,977 shares today.
- MCRS traded in a range 351.9% of the normal price range with a price range of $3.31.
- MCRS traded below its daily resistance level (quality: 1 day, meaning that the stock is crossing a resistance level set by the last 1 calendar day. 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 MCRS with the Ticky from Trade-Ideas. See the FREE profile for MCRS NOW at Trade-Ideas More details on MCRS: MICROS Systems, Inc. designs, manufactures, markets, and services enterprise applications solutions for food and beverage, hotel, and retail industries worldwide. MCRS has a PE ratio of 26.8. Currently there are 7 analysts that rate Micros Systems a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Micros Systems has been 535,000 shares per day over the past 30 days. Micros Systems has a market cap of $4.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.03 and a short float of 15.2% with 13.27 days to cover. Shares are down 4.2% 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 Micros Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Compared to its closing price of one year ago, MCRS's share price has jumped by 30.99%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MCRS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 12.0%. Since the same quarter one year prior, revenues slightly increased by 5.0%. 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.
- Net operating cash flow has significantly increased by 713.79% to $49.01 million when compared to the same quarter last year. In addition, MICROS SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -14.95%.
- The gross profit margin for MICROS SYSTEMS INC is rather high; currently it is at 52.06%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MCRS's net profit margin of 10.25% significantly trails the industry average.
- You can view the full Micros Systems 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.