Trade-Ideas LLC identified

Brunswick

(

BC

) 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 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 $63.2 million.
  • BC has traded 216,066 shares today.
  • BC traded in a range 232.8% of the normal price range with a price range of $2.70.
  • BC traded below its daily resistance level (quality: 9 days, meaning that the stock is crossing a resistance level set by the last 9 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.

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More details on BC:

Brunswick Corporation designs, manufactures, and markets recreation products worldwide. The stock currently has a dividend yield of 1.2%. BC has a PE ratio of 24. Currently there are 12 analysts that rate Brunswick a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Brunswick has been 1.0 million shares per day over the past 30 days. Brunswick has a market cap of $4.6 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.78 and a short float of 5% with 3.43 days to cover. Shares are down 0.4% 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, impressive record of earnings per share growth, increase in net income, reasonable valuation levels 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:

  • BC's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BRUNSWICK CORP has improved earnings per share by 15.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, BRUNSWICK CORP increased its bottom line by earning $2.40 versus $2.05 in the prior year. This year, the market expects an improvement in earnings ($3.46 versus $2.40).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Leisure Equipment & Products industry average. The net income increased by 13.7% when compared to the same quarter one year prior, going from $57.00 million to $64.80 million.
  • Net operating cash flow has increased to -$93.20 million or 29.55% when compared to the same quarter last year. Despite an increase in cash flow of 29.55%, BRUNSWICK CORP is still growing at a significantly lower rate than the industry average of 182.46%.

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