Trade-Ideas LLC identified

Brunswick

(

BC

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

  • BC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.1 million.
  • BC has traded 55,655 shares today.
  • BC traded in a range 210.6% of the normal price range with a price range of $2.24.
  • BC traded above its daily resistance level (quality: 69 days, meaning that the stock is crossing a resistance level set by the last 69 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 BC:

TheStreet Recommends

Brunswick Corporation designs, manufactures, and markets recreation products in the United States and internationally. The stock currently has a dividend yield of 1.2%. BC has a PE ratio of 21. Currently there are 11 analysts that rate Brunswick a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Brunswick has been 808,700 shares per day over the past 30 days. Brunswick has a market cap of $4.5 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.58 and a short float of 2.5% with 2.42 days to cover. Shares are down 2.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Brunswick 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, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • BC's revenue growth has slightly outpaced the industry average of 0.9%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Leisure Equipment & Products industry. The net income increased by 33.0% when compared to the same quarter one year prior, rising from $88.60 million to $117.80 million.

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