Trade-Ideas LLC identified Imperial Oil ( IMO) 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 Imperial Oil as such a stock due to the following factors:

  • IMO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.4 million.
  • IMO has traded 493,394 shares today.
  • IMO traded in a range 202.7% of the normal price range with a price range of $2.56.
  • IMO traded above its daily resistance level (quality: 11 days, meaning that the stock is crossing a resistance level set by the last 11 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 IMO:

Imperial Oil Limited explores for, produces, and sells crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment explores for and produces crude oil, natural gas, synthetic oil, and bitumen. The stock currently has a dividend yield of 1.3%. IMO has a PE ratio of 16. Currently there are no analysts that rate Imperial Oil a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Imperial Oil has been 377,400 shares per day over the past 30 days. Imperial Oil has a market cap of $28.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.27 and a short float of 3.1% with 12.38 days to cover. Shares are down 19.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Imperial Oil as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.36 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Despite the weak revenue results, IMO has outperformed against the industry average of 34.4%. Since the same quarter one year prior, revenues fell by 23.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for IMPERIAL OIL LTD is rather low; currently it is at 17.36%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.74% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $377.00 million or 62.26% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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