Trade-Ideas LLC identified

FLIR Systems

(

FLIR

) 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 FLIR Systems as such a stock due to the following factors:

  • FLIR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.7 million.
  • FLIR has traded 859,964 shares today.
  • FLIR traded in a range 218% of the normal price range with a price range of $1.73.
  • FLIR traded below its daily resistance level (quality: 10 days, meaning that the stock is crossing a resistance level set by the last 10 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 FLIR:

FLIR Systems, Inc. designs, manufactures, and markets thermal imaging, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions worldwide. The stock currently has a dividend yield of 1.4%. FLIR has a PE ratio of 18. Currently there are 4 analysts that rate FLIR Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for FLIR Systems has been 1.3 million shares per day over the past 30 days. FLIR Systems has a market cap of $4.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.60 and a short float of 1.5% with 0.84 days to cover. Shares are up 11.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FLIR Systems as a

buy

. 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 largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • FLIR SYSTEMS INC has improved earnings per share by 40.5% 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, FLIR SYSTEMS INC increased its bottom line by earning $1.40 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($1.58 versus $1.40).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 38.2% when compared to the same quarter one year prior, rising from $52.86 million to $73.07 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 2.2%. Since the same quarter one year prior, revenues slightly increased by 1.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FLIR's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.64, which clearly demonstrates the ability to cover short-term cash needs.

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