Trade-Ideas LLC identified ConAgra Foods ( CAG) 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 ConAgra Foods as such a stock due to the following factors:

  • CAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $148.3 million.
  • CAG has traded 1.4 million shares today.
  • CAG traded in a range 201.8% of the normal price range with a price range of $1.28.
  • CAG traded above its daily resistance level (quality: 268 days, meaning that the stock is crossing a resistance level set by the last 268 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CAG with the Ticky from Trade-Ideas. See the FREE profile for CAG NOW at Trade-Ideas

More details on CAG:

ConAgra Foods, Inc. operates as a food company primarily in North America. The company operates through three segments: Consumer Foods, Commercial Foods, and Private Brands. The stock currently has a dividend yield of 2.2%. Currently there are 5 analysts that rate ConAgra Foods a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for ConAgra Foods has been 3.1 million shares per day over the past 30 days. ConAgra has a market cap of $19.5 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.19 and a short float of 1.5% with 2.04 days to cover. Shares are up 5.8% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ConAgra Foods as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, solid stock price performance and good cash flow from operations. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 1449.0% when compared to the same quarter one year prior, rising from $10.00 million to $154.90 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • Net operating cash flow has increased to $251.20 million or 36.44% when compared to the same quarter last year. Despite an increase in cash flow, CONAGRA FOODS INC's cash flow growth rate is still lower than the industry average growth rate of 79.39%.
  • CONAGRA FOODS INC's earnings per share declined by 24.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CONAGRA FOODS INC swung to a loss, reporting -$1.05 versus $0.35 in the prior year. This year, the market expects an improvement in earnings ($2.34 versus -$1.05).
  • CAG, with its decline in revenue, slightly underperformed the industry average of 8.3%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.