Trade-Ideas LLC identified

Teleflex

(

TFX

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Teleflex as such a stock due to the following factors:

  • TFX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.7 million.
  • TFX has traded 463,948 shares today.
  • TFX traded in a range 247.2% of the normal price range with a price range of $6.53.
  • TFX traded above its daily resistance level (quality: 531 days, meaning that the stock is crossing a resistance level set by the last 531 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on TFX:

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. The stock currently has a dividend yield of 1%. TFX has a PE ratio of 32. Currently there are 7 analysts that rate Teleflex a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Teleflex has been 298,400 shares per day over the past 30 days. Teleflex has a market cap of $5.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.88 and a short float of 8.2% with 10.94 days to cover. Shares are up 0.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Teleflex as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • TELEFLEX INC has improved earnings per share by 7.6% 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. During the past fiscal year, TELEFLEX INC increased its bottom line by earning $4.09 versus $3.46 in the prior year. This year, the market expects an improvement in earnings ($6.25 versus $4.09).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 10.9% when compared to the same quarter one year prior, going from $54.83 million to $60.82 million.
  • The gross profit margin for TELEFLEX INC is rather high; currently it is at 57.32%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.70% is above that of the industry average.

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