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.

Trade-Ideas LLC identified Toronto-Dominion Bank ( TD) 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 Toronto-Dominion Bank as such a stock due to the following factors:

  • TD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.4 million.
  • TD has traded 877,126 shares today.
  • TD traded in a range 224.5% of the normal price range with a price range of $1.35.
  • TD traded above its daily resistance level (quality: 98 days, meaning that the stock is crossing a resistance level set by the last 98 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 TD:

The Toronto-Dominion Bank, together with its subsidiaries, provides financial and banking services in North America and internationally. The company operates through Canadian Retail, U.S. Retail, and Wholesale Banking segments. The stock currently has a dividend yield of 3.7%. TD has a PE ratio of 13.4. Currently there are 3 analysts that rate Toronto-Dominion Bank a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Toronto-Dominion Bank has been 1.9 million shares per day over the past 30 days. Toronto-Dominion has a market cap of $81.3 billion and is part of the financial sector and banking industry. Shares are down 7.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Toronto-Dominion Bank as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • TD's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Banks industry average. The net income increased by 0.9% when compared to the same quarter one year prior, going from $2,015.00 million to $2,033.00 million.
  • The gross profit margin for TORONTO DOMINION BANK is currently very high, coming in at 82.72%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.85% significantly outperformed against the industry average.
  • TORONTO DOMINION BANK's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, TORONTO DOMINION BANK increased its bottom line by earning $4.13 versus $3.45 in the prior year.
  • Net operating cash flow has slightly increased to $19,253.00 million or 5.72% when compared to the same quarter last year. Despite an increase in cash flow of 5.72%, TORONTO DOMINION BANK is still growing at a significantly lower rate than the industry average of 318.99%.

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