Barbarian At The Gate: Evercore Partners (EVR)

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 Evercore Partners ( EVR) 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 Evercore Partners as such a stock due to the following factors:

  • EVR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.6 million.
  • EVR has traded 496,595 shares today.
  • EVR traded in a range 205.6% of the normal price range with a price range of $2.16.
  • EVR traded above its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 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 EVR:

Evercore Partners Inc. operates as an independent investment banking advisory firm. The company operates through two segments, Investment Banking and Investment Management. The stock currently has a dividend yield of 2%. EVR has a PE ratio of 30.3. Currently there are 5 analysts that rate Evercore Partners a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Evercore Partners has been 423,100 shares per day over the past 30 days. Evercore has a market cap of $1.8 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.71 and a short float of 3.1% with 2.51 days to cover. Shares are down 16.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Evercore Partners as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • EVR's revenue growth has slightly outpaced the industry average of 2.8%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • EVERCORE PARTNERS INC has improved earnings per share by 34.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EVERCORE PARTNERS INC increased its bottom line by earning $1.41 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($2.59 versus $1.41).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 47.7% when compared to the same quarter one year prior, rising from $16.43 million to $24.27 million.
  • 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. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The gross profit margin for EVERCORE PARTNERS INC is rather low; currently it is at 23.26%. Regardless of EVR'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 10.94% trails the industry average.

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