World Fuel Services (INT) Marked As A Barbarian At The Gate

Trade-Ideas LLC identified World Fuel Services ( INT) 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 World Fuel Services as such a stock due to the following factors:

  • INT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.3 million.
  • INT has traded 158,654 shares today.
  • INT traded in a range 234.1% of the normal price range with a price range of $3.40.
  • INT traded above its daily resistance level (quality: 49 days, meaning that the stock is crossing a resistance level set by the last 49 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 INT:

World Fuel Services Corporation, a fuel logistics, transaction management, and payment processing company, sells and distributes fuel and related products and services in the aviation, marine, and land transportation industries. It operates through three segments: Aviation, Marine, and Land. The stock currently has a dividend yield of 0.7%. INT has a PE ratio of 13. Currently there are no analysts that rate World Fuel Services a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for World Fuel Services has been 437,500 shares per day over the past 30 days. World Fuel Services has a market cap of $2.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.23 and a short float of 4.8% with 4.49 days to cover. Shares are down 5.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates World Fuel Services as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 444.73% to $147.40 million when compared to the same quarter last year. In addition, WORLD FUEL SERVICES CORP has also vastly surpassed the industry average cash flow growth rate of -37.44%.
  • INT, with its decline in revenue, slightly underperformed the industry average of 31.6%. Since the same quarter one year prior, revenues fell by 33.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, INT has underperformed the S&P 500 Index, declining 20.22% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, WORLD FUEL SERVICES CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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