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 C.R. Bard as such a stock due to the following factors:
- BCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $82.8 million.
- BCR has traded 98,345 shares today.
- BCR traded in a range 255.2% of the normal price range with a price range of $5.06.
- BCR traded below its daily resistance level (quality: 101 days, meaning that the stock is crossing a resistance level set by the last 101 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 BCR:
C. R. Bard, Inc. designs, manufactures, packages, distributes, and sells medical, surgical, diagnostic, and patient care devices worldwide. The stock currently has a dividend yield of 0.6%. BCR has a PE ratio of 73.0. Currently there are 4 analysts that rate C.R. Bard a buy, 1 analyst rates it a sell, and 10 rate it a hold.
The average volume for C.R. Bard has been 534,600 shares per day over the past 30 days. C.R. Bard has a market cap of $10.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.81 and a short float of 1.8% with 2.15 days to cover. Shares are down 2.7% year-to-date as of the close of trading on Wednesday.
rates C.R. Bard as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 23.5%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $201.30 million or 4.03% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -22.77%.
- BCR's debt-to-equity ratio of 1.00 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that BCR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.49 is high and demonstrates strong liquidity.
- Compared to its closing price of one year ago, BCR's share price has jumped by 33.30%, exceeding the performance of the broader market during that same time frame. 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.
- The gross profit margin for BARD (C.R.) INC is rather high; currently it is at 65.26%. Regardless of BCR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.29% trails the industry average.
- You can view the full C.R. Bard Ratings Report.