DTE Energy Holding Company (DTE) Marked As A Barbarian At The Gate

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 DTE Energy Holding Company ( DTE) 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 DTE Energy Holding Company as such a stock due to the following factors:

  • DTE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $92.2 million.
  • DTE has traded 468,153 shares today.
  • DTE traded in a range 231.2% of the normal price range with a price range of $2.21.
  • DTE traded above its daily resistance level (quality: 195 days, meaning that the stock is crossing a resistance level set by the last 195 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 DTE:

DTE Energy Company, together with its subsidiaries, operates as an energy company. The company's Electric segment engages in the generation, purchase, distribution, and sale of electricity to approximately 2.1 million residential, commercial, and industrial customers in southeastern Michigan. The stock currently has a dividend yield of 3.8%. DTE has a PE ratio of 17.8. Currently there are 2 analysts that rate DTE Energy Holding Company a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for DTE Energy Holding Company has been 1.1 million shares per day over the past 30 days. DTE Energy Holding has a market cap of $12.2 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.31 and a short float of 1.7% with 2.05 days to cover. Shares are up 4.8% 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 DTE Energy Holding Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth 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 31.9%. Since the same quarter one year prior, revenues slightly increased by 9.0%. 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.
  • 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.
  • DTE ENERGY CO's earnings per share declined by 13.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, DTE ENERGY CO reported lower earnings of $3.87 versus $4.18 in the prior year. This year, the market expects an improvement in earnings ($4.04 versus $3.87).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Multi-Utilities industry and the overall market on the basis of return on equity, DTE ENERGY CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has decreased to $448.00 million or 21.12% when compared to the same quarter last year. Despite a decrease in cash flow DTE ENERGY CO is still fairing well by exceeding its industry average cash flow growth rate of -56.71%.

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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