Barbarian At The Gate: INC Research Holdings (INCR)

Trade-Ideas LLC identified INC Research Holdings (INCR) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

INC Research Holdings

(

INCR

) 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 INC Research Holdings as such a stock due to the following factors:

  • INCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.1 million.
  • INCR has traded 66,225 shares today.
  • INCR traded in a range 200.9% of the normal price range with a price range of $1.88.
  • INCR 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.

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

More details on INCR:

INC Research Holdings, Inc., a contract research organization, provides various clinical development services for the biopharmaceutical and medical device industries. INCR has a PE ratio of 23. Currently there are 6 analysts that rate INC Research Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for INC Research Holdings has been 819,900 shares per day over the past 30 days. INC Research has a market cap of $2.3 billion and is part of the services sector and diversified services industry. Shares are down 12.5% year-to-date as of the close of trading on Monday.

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 INC Research Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • Compared to other companies in the Life Sciences Tools & Services industry and the overall market, INC RESEARCH HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The revenue growth came in higher than the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 33.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • After a year of stock price fluctuations, the net result is that INCR's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for INC RESEARCH HOLDINGS INC is rather low; currently it is at 23.47%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.21% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.65 million or 101.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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.

Loading ...