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

Bio-Reference Laboratories

(

BRLI

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Bio-Reference Laboratories as such a stock due to the following factors:

  • BRLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.8 million.
  • BRLI has traded 248,183 shares today.
  • BRLI is down 3% today.
  • BRLI was up 22.3% yesterday.

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More details on BRLI:

Bio-Reference Laboratories, Inc. provides clinical laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases in New Jersey, New York, Maryland, Massachusetts, Texas, and Ohio. BRLI has a PE ratio of 18.5. Currently there is 1 analyst that rates Bio-Reference Laboratories a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Bio-Reference Laboratories has been 271,500 shares per day over the past 30 days. Bio-Reference has a market cap of $742.3 million and is part of the health care sector and health services industry. The stock has a beta of 1.16 and a short float of 32.8% with 18.56 days to cover. Shares are up 4.9% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bio-Reference Laboratories as a

hold

. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 16.8%. Since the same quarter one year prior, revenues rose by 12.4%. 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.
  • BRLI's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BRLI has a quick ratio of 1.70, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 42.33% is the gross profit margin for BIO REFERENCE LABS which we consider to be strong. Regardless of BRLI'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 1.62% trails the industry average.
  • Net operating cash flow has significantly decreased to -$2.75 million or 136.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has significantly decreased by 65.9% when compared to the same quarter one year ago, falling from $8.67 million to $2.95 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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