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 Synovus Financial ( SNV) 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 Synovus Financial as such a stock due to the following factors:
- SNV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.3 million.
- SNV has traded 252,350 shares today.
- SNV traded in a range 340.4% of the normal price range with a price range of $2.00.
- SNV traded above its daily resistance level (quality: 4 days, meaning that the stock is crossing a resistance level set by the last 4 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in SNV with the Ticky from Trade-Ideas. See the FREE profile for SNV NOW at Trade-Ideas More details on SNV: Synovus Financial Corp. operates as a financial services and bank holding company. It offers integrated financial services, including commercial and retail banking, financial management, insurance, and mortgage services. The stock currently has a dividend yield of 1.3%. SNV has a PE ratio of 19.8. Currently there are 3 analysts that rate Synovus Financial a buy, 2 analysts rate it a sell, and 8 rate it a hold. The average volume for Synovus Financial has been 7.8 million shares per day over the past 30 days. Synovus Financial has a market cap of $3.1 billion and is part of the financial sector and banking industry. The stock has a beta of 2.72 and a short float of 1.7% with 14.97 days to cover. Shares are down 13.1% 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 Synovus Financial as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow. 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 Commercial Banks industry. The net income increased by 63.7% when compared to the same quarter one year prior, rising from $29.57 million to $48.42 million.
- The gross profit margin for SYNOVUS FINANCIAL CORP is currently very high, coming in at 87.23%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, SNV's net profit margin of 16.53% significantly trails the industry average.
- 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. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Commercial Banks industry and the overall market, SYNOVUS FINANCIAL CORP's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $87.27 million or 51.18% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Synovus Financial 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.