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.
Trade-Ideas LLC identified
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified IDEXX Laboratories as such a stock due to the following factors:
- IDXX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.0 million.
- IDXX has traded 794,291 shares today.
- IDXX is trading at 2.84 times the normal volume for the stock at this time of day.
- IDXX crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in IDXX with the Ticky from Trade-Ideas. See the FREE profile for IDXX NOW at Trade-Ideas
More details on IDXX:
IDEXX Laboratories, Inc., together with its subsidiaries, develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, water testing, and dairy markets worldwide. IDXX has a PE ratio of 36. Currently there are 5 analysts that rate IDEXX Laboratories a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for IDEXX Laboratories has been 872,600 shares per day over the past 30 days. IDEXX has a market cap of $6.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.70 and a short float of 9.9% with 8.59 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Wednesday.
rates IDEXX Laboratories as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year.
Highlights from the ratings report include:
- IDEXX LABS INC has improved earnings per share by 10.1% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, IDEXX LABS INC increased its bottom line by earning $1.78 versus $1.74 in the prior year. This year, the market expects an improvement in earnings ($2.09 versus $1.78).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry average. The net income increased by 0.0% when compared to the same quarter one year prior, going from $46.59 million to $46.59 million.
- Net operating cash flow has significantly decreased to -$14.64 million or 143.68% 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 debt-to-equity ratio is very high at 30.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, IDXX has a quick ratio of 0.67, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full IDEXX Laboratories Ratings Report.