Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) 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 Carbo Ceramics as such a stock due to the following factors:
- CRR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.6 million.
- CRR has traded 178,588 shares today.
- CRR traded in a range 250.4% of the normal price range with a price range of $8.99.
- CRR traded above its daily resistance level (quality: 50 days, meaning that the stock is crossing a resistance level set by the last 50 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 CRR with the Ticky from Trade-Ideas. See the FREE profile for CRR NOW at Trade-Ideas
More details on CRR:
CARBO Ceramics Inc. manufactures and sells resin-coated ceramic and resin-coated sand proppants primarily used in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. The stock currently has a dividend yield of 1.1%. CRR has a PE ratio of 29.5. Currently there is 1 analyst that rates Carbo Ceramics a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Carbo Ceramics has been 265,600 shares per day over the past 30 days. Carbo Ceramics has a market cap of $2.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.84 and a short float of 18.5% with 13.45 days to cover. Shares are down 8% year-to-date as of the close of trading on Wednesday.
rates Carbo Ceramics as a
. 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, increase in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 33.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CRR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.49, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Energy Equipment & Services industry average. The net income increased by 26.1% when compared to the same quarter one year prior, rising from $23.90 million to $30.15 million.
- Powered by its strong earnings growth of 25.96% and other important driving factors, this stock has surged by 38.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 36.98% is the gross profit margin for CARBO CERAMICS INC which we consider to be strong. Regardless of CRR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CRR's net profit margin of 14.96% compares favorably to the industry average.
- You can view the full Carbo Ceramics Ratings Report.