Trade-Ideas LLC identified Public Service Enterprise Group ( PEG) 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 Public Service Enterprise Group as such a stock due to the following factors:
- PEG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $136.7 million.
- PEG has traded 658,413 shares today.
- PEG traded in a range 259% of the normal price range with a price range of $1.97.
- PEG traded above its daily resistance level (quality: 8 days, meaning that the stock is crossing a resistance level set by the last 8 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 PEG with the Ticky from Trade-Ideas. See the FREE profile for PEG NOW at Trade-Ideas More details on PEG: Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid- Atlantic United States. The stock currently has a dividend yield of 3.6%. PEG has a PE ratio of 8. Currently there are 2 analysts that rate Public Service Enterprise Group a buy, 1 analyst rates it a sell, and 6 rate it a hold. The average volume for Public Service Enterprise Group has been 3.1 million shares per day over the past 30 days. Public Service Enterprise Group has a market cap of $23.3 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.37 and a short float of 2.4% with 4.02 days to cover. Shares are up 19.6% 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 Public Service Enterprise Group as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Multi-Utilities industry and the overall market, PUBLIC SERVICE ENTRP GRP INC's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $691.00 million or 10.73% when compared to the same quarter last year. In addition, PUBLIC SERVICE ENTRP GRP INC has also modestly surpassed the industry average cash flow growth rate of 3.96%.
- 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The debt-to-equity ratio is somewhat low, currently at 0.76, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.41 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Public Service Enterprise Group Ratings Report.
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