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 Jarden ( JAH) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Jarden as such a stock due to the following factors:
- JAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.6 million.
- JAH has traded 128,952 shares today.
- JAH is trading at 1.66 times the normal volume for the stock at this time of day.
- JAH crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in JAH with the Ticky from Trade-Ideas. See the FREE profile for JAH NOW at Trade-Ideas More details on JAH: Jarden Corporation manufactures, markets, and distributes consumer products in the Unites States and internationally. JAH has a PE ratio of 31.1. Currently there are 8 analysts that rate Jarden a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Jarden has been 1.5 million shares per day over the past 30 days. Jarden has a market cap of $7.4 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.38 and a short float of 3.6% with 3.65 days to cover. Shares are down 8% year-to-date as of the close of trading on Wednesday. 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 Jarden as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 184.1% when compared to the same quarter one year prior, rising from -$4.40 million to $3.70 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 19.0%. Since the same quarter one year prior, revenues slightly increased by 9.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
- JARDEN CORP reported significant earnings per share improvement 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, JARDEN CORP reported lower earnings of $1.81 versus $2.09 in the prior year. This year, the market expects an improvement in earnings ($3.93 versus $1.81).
- The gross profit margin for JARDEN CORP is currently lower than what is desirable, coming in at 32.34%. Regardless of JAH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.21% trails the industry average.
- You can view the full Jarden 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.