Trade-Ideas LLC identified DeVry Education Group ( DV) 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 DeVry Education Group as such a stock due to the following factors:

  • DV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.4 million.
  • DV has traded 273,476 shares today.
  • DV traded in a range 371.6% of the normal price range with a price range of $2.97.
  • DV traded above its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 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 DV:

DeVry Education Group Inc. provides educational services worldwide. It operates in three segments: Medical and Healthcare; International and Professional Educational; and Business, Technology and Management. The stock currently has a dividend yield of 1.3%. DV has a PE ratio of 13. Currently there is 1 analyst that rates DeVry Education Group a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for DeVry Education Group has been 744,800 shares per day over the past 30 days. DeVry 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 0.87 and a short float of 15.6% with 12.80 days to cover. Shares are down 43% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates DeVry Education Group as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels 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 and weak operating cash flow.

Highlights from the ratings report include:
  • DV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.41, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Diversified Consumer Services industry and the overall market on the basis of return on equity, DEVRY EDUCATION GROUP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 32.84%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 26.43% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Net operating cash flow has decreased to $117.06 million or 22.00% when compared to the same quarter last year. Despite a decrease in cash flow of 22.00%, DEVRY EDUCATION GROUP INC is in line with the industry average cash flow growth rate of -30.80%.

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