Trade-Ideas LLC identified

Crane

(

CR

) 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 Crane as such a stock due to the following factors:

  • CR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.3 million.
  • CR has traded 319,514 shares today.
  • CR traded in a range 202.1% of the normal price range with a price range of $2.94.
  • CR traded above its daily resistance level (quality: 11 days, meaning that the stock is crossing a resistance level set by the last 11 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 CR:

Crane Co. manufactures and sells engineered industrial products in the United States and internationally. It operates in four segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. The stock currently has a dividend yield of 3%. CR has a PE ratio of 12. Currently there are 4 analysts that rate Crane a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Crane has been 384,700 shares per day over the past 30 days. Crane has a market cap of $2.6 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.35 and a short float of 0.7% with 0.62 days to cover. Shares are down 8.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Crane as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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 Machinery industry. The net income increased by 102.6% when compared to the same quarter one year prior, rising from $28.08 million to $56.90 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.77, 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 1.20, which illustrates the ability to avoid short-term cash problems.
  • 38.12% is the gross profit margin for CRANE CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.49% is above that of the industry average.
  • Net operating cash flow has slightly increased to $69.70 million or 2.25% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -18.37%.

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