Trade-Ideas LLC identified

Bio-Rad Laboratories

(

BIO

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Bio-Rad Laboratories as such a stock due to the following factors:

  • BIO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.8 million.
  • BIO has traded 12.5969999999999995310417943983338773250579833984375 options contracts today.
  • BIO is making at least a new 3-day high.
  • BIO has a PE ratio of 4.
  • BIO is mentioned 0.58 times per day on StockTwits.
  • BIO has not yet been mentioned on StockTwits today.
  • BIO is currently in the upper 20% of its 1-year range.
  • BIO is in the upper 35% of its 20-day range.
  • BIO is in the upper 45% of its 5-day range.
  • BIO is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on BIO:

Bio-Rad Laboratories, Inc. manufactures and supplies a range of reagents, apparatus, and equipment to separate complex chemical and biological materials, as well as to identify, analyze, and purify components for life science research, healthcare, analytical chemistry, and other markets. BIO has a PE ratio of 4. Currently there is 1 analyst that rates Bio-Rad Laboratories a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Bio-Rad Laboratories has been 124,600 shares per day over the past 30 days. Bio-Rad has a market cap of $4.4 billion and is part of the health care sector and health services industry. The stock has a beta of 0.82 and a short float of 4.8% with 10.09 days to cover. Shares are up 7.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bio-Rad Laboratories as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • BIO's debt-to-equity ratio is very low at 0.17 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 2.83, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for BIO-RAD LABORATORIES INC is rather high; currently it is at 63.27%. Regardless of BIO'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 2.60% trails the industry average.
  • BIO, with its decline in revenue, underperformed when compared the industry average of 12.0%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • After a year of stock price fluctuations, the net result is that BIO's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, the stock's 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 the other strengths this company displays justify these higher price levels.
  • BIO-RAD LABORATORIES INC's earnings per share declined by 31.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BIO-RAD LABORATORIES INC increased its bottom line by earning $3.85 versus $3.05 in the prior year. For the next year, the market is expecting a contraction of 14.0% in earnings ($3.31 versus $3.85).

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