Trade-Ideas LLC identified Euronet Worldwide ( EEFT) as a "water-logged and getting wetter" (weak stocks crossing below support 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 $32.3 million.
  • EEFT has traded 658,366 shares today.
  • EEFT traded in a range 250.6% of the normal price range with a price range of $3.80.
  • EEFT traded below its daily resistance level (quality: 91 days, meaning that the stock is crossing a resistance level set by the last 91 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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

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 33. Currently there are 6 analysts that rate Euronet Worldwide a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Euronet Worldwide has been 308,000 shares per day over the past 30 days. Euronet Worldwide has a market cap of $4.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.47 and a short float of 4.7% with 4.46 days to cover. Shares are up 8.1% 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 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, compelling growth in net income, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.1%. Since the same quarter one year prior, revenues rose by 10.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.08, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 305.3% when compared to the same quarter one year prior, rising from $7.18 million to $29.09 million.
  • Net operating cash flow has significantly increased by 91.94% to $104.61 million when compared to the same quarter last year. In addition, EURONET WORLDWIDE INC has also vastly surpassed the industry average cash flow growth rate of 32.45%.
  • Powered by its strong earnings growth of 307.69% and other important driving factors, this stock has surged by 29.13% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.

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.