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 "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 Charles River Laboratories International In as such a stock due to the following factors:
- CRL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.6 million.
- CRL has traded 50,661 shares today.
- CRL traded in a range 204.9% of the normal price range with a price range of $3.44.
- CRL traded below its daily resistance level (quality: 8 days, meaning that the stock is crossing a resistance level set by the last 8 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.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CRL with the Ticky from Trade-Ideas. See the FREE profile for CRL NOW at Trade-Ideas
More details on CRL:
Charles River Laboratories International, Inc., together with its subsidiaries, provides research models and associated services, and outsourced preclinical services to accelerate the drug discovery and development process. CRL has a PE ratio of 25.9. Currently there are 5 analysts that rate Charles River Laboratories International In a buy, no analysts rate it a sell, and 10 rate it a hold.
The average volume for Charles River Laboratories International In has been 420,700 shares per day over the past 30 days. Charles River Laboratories International In has a market cap of $3.0 billion and is part of the health care sector and health services industry. The stock has a beta of 1.31 and a short float of 4% with 3.16 days to cover. Shares are up 21.6% year-to-date as of the close of trading on Wednesday.
rates Charles River Laboratories International In as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 29.31% and other important driving factors, this stock has surged by 29.38% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CRL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CHARLES RIVER LABS INTL INC has improved earnings per share by 29.3% 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, CHARLES RIVER LABS INTL INC increased its bottom line by earning $2.15 versus $2.11 in the prior year. This year, the market expects an improvement in earnings ($3.32 versus $2.15).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Life Sciences Tools & Services industry average. The net income increased by 29.2% when compared to the same quarter one year prior, rising from $27.28 million to $35.26 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 16.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, CHARLES RIVER LABS INTL INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full Charles River Laboratories International In Ratings Report.