Trade-Ideas LLC identified Euronet Worldwide ( EEFT) 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 Euronet Worldwide as such a stock due to the following factors:

  • EEFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.5 million.
  • EEFT has traded 520,339 shares today.
  • EEFT traded in a range 214.2% of the normal price range with a price range of $5.58.
  • EEFT traded above its daily resistance level (quality: 77 days, meaning that the stock is crossing a resistance level set by the last 77 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 EEFT:

Euronet Worldwide, Inc. provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers, and individual consumers worldwide. EEFT has a PE ratio of 42. Currently there are 5 analysts that rate Euronet Worldwide a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Euronet Worldwide has been 327,100 shares per day over the past 30 days. Euronet Worldwide has a market cap of $3.9 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.61 and a short float of 2.5% with 2.83 days to cover. Shares are up 2.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Euronet Worldwide as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 19.9%. Since the same quarter one year prior, revenues slightly increased by 6.2%. 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.
  • The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
  • Compared to its closing price of one year ago, EEFT's share price has jumped by 45.68%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • EURONET WORLDWIDE INC's earnings per share declined by 10.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EURONET WORLDWIDE INC increased its bottom line by earning $1.87 versus $1.70 in the prior year. This year, the market expects an improvement in earnings ($3.31 versus $1.87).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income has decreased by 10.6% when compared to the same quarter one year ago, dropping from $35.04 million to $31.33 million.

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