Barbarian At The Gate: Apollo Education Group (APOL)

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 Apollo Education Group ( APOL) 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 Apollo Education Group as such a stock due to the following factors:

  • APOL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.1 million.
  • APOL has traded 616,663 shares today.
  • APOL traded in a range 201.2% of the normal price range with a price range of $0.74.
  • APOL traded above its daily resistance level (quality: 20 days, meaning that the stock is crossing a resistance level set by the last 20 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 APOL with the Ticky from Trade-Ideas. See the FREE profile for APOL NOW at Trade-Ideas

More details on APOL:

Apollo Education Group, Inc. provides private education services. It offers online and on-campus undergraduate, graduate, professional development, and other non-degree educational programs and services primarily to working learners in the United States and internationally. APOL has a PE ratio of 18. Currently there are no analysts that rate Apollo Education Group a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Apollo Education Group has been 1.9 million shares per day over the past 30 days. Apollo Education Group has a market cap of $1.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.36 and a short float of 3.1% with 2.74 days to cover. Shares are down 51.4% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Apollo Education Group as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 37.98%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 306.66% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • APOLLO EDUCATION GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, APOLLO EDUCATION GROUP INC reported lower earnings of $1.92 versus $2.20 in the prior year. For the next year, the market is expecting a contraction of 43.0% in earnings ($1.10 versus $1.92).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Consumer Services industry. The net income has significantly decreased by 330.1% when compared to the same quarter one year ago, falling from $14.61 million to -$33.61 million.
  • 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. In comparison to the other companies in the Diversified Consumer Services industry and the overall market, APOLLO EDUCATION GROUP INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $36.81 million or 43.00% when compared to the same quarter last year. Despite a decrease in cash flow of 43.00%, APOLLO EDUCATION GROUP INC is still significantly exceeding the industry average of -349.68%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

60 Seconds: What is the Volcker Rule and How Does it Affect Your Portfolio?

60 Seconds: What is the Volcker Rule and How Does it Affect Your Portfolio?

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

Get to Know Stacey Cunningham, the NYSE's First Female Leader in 226 Years

Get to Know Stacey Cunningham, the NYSE's First Female Leader in 226 Years

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know

China Slashes Auto Import Tariffs as Trump's Trade Push Gets Big Early Win

China Slashes Auto Import Tariffs as Trump's Trade Push Gets Big Early Win