Trade-Ideas LLC identified Crown Holdings ( CCK) 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 Crown Holdings as such a stock due to the following factors:

  • CCK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $59.3 million.
  • CCK has traded 228,913 shares today.
  • CCK traded in a range 222.5% of the normal price range with a price range of $3.21.
  • CCK traded above its daily resistance level (quality: 21 days, meaning that the stock is crossing a resistance level set by the last 21 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 CCK:

Crown Holdings, Inc. designs, manufactures, and sells packaging products for consumer goods in Americas, Europe, and the Asia Pacific. CCK has a PE ratio of 19. Currently there are 4 analysts that rate Crown Holdings a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Crown Holdings has been 747,900 shares per day over the past 30 days. Crown has a market cap of $6.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.69 and a short float of 0.9% with 1.00 days to cover. Shares are down 11.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Crown Holdings as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and relatively strong performance when compared with the S&P 500 during the past year. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Containers & Packaging industry and the overall market, CROWN HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 161.90% to $330.00 million when compared to the same quarter last year. In addition, CROWN HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -10.34%.
  • CROWN HOLDINGS INC's earnings per share declined by 42.6% 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, CROWN HOLDINGS INC increased its bottom line by earning $2.78 versus $2.30 in the prior year. This year, the market expects an improvement in earnings ($3.57 versus $2.78).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.7%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Containers & Packaging industry average, but is less than that of the S&P 500. The net income has significantly decreased by 42.2% when compared to the same quarter one year ago, falling from $244.00 million to $141.00 million.

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