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 Tanger Factory Outlet Centers ( SKT) 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 Tanger Factory Outlet Centers as such a stock due to the following factors:

  • SKT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.2 million.
  • SKT has traded 92,490 shares today.
  • SKT traded in a range 201.2% of the normal price range with a price range of $0.87.
  • SKT 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.

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More details on SKT:

Tanger Factory Outlet Centers, Inc. is a real estate investment trust. The firm invests in the real estate markets in United States. It focuses on developing, acquiring, owning, operating, and managing outlet shopping centers. Tanger Factory Outlet Centers, Inc. The stock currently has a dividend yield of 3.3%. SKT has a PE ratio of 44.4. Currently there are no analysts that rate Tanger Factory Outlet Centers a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for Tanger Factory Outlet Centers has been 746,500 shares per day over the past 30 days. Tanger Factory Outlet Centers has a market cap of $3.3 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.04 and a short float of 4.4% with 4.43 days to cover. Shares are down 7.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tanger Factory Outlet Centers as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 2.7%. 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.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, TANGER FACTORY OUTLET CTRS's return on equity exceeds that of both the industry average and the S&P 500.
  • TANGER FACTORY OUTLET CTRS's earnings per share declined by 21.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TANGER FACTORY OUTLET CTRS reported lower earnings of $0.77 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus $0.77).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Investment Trusts (REITs) industry average. The net income has decreased by 20.0% when compared to the same quarter one year ago, dropping from $21.94 million to $17.54 million.
  • In its most recent trading session, SKT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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