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

Teleflex

(

TFX

) 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 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 $33.5 million.
  • TFX has traded 101,401 shares today.
  • TFX traded in a range 324.3% of the normal price range with a price range of $5.19.
  • TFX traded below its daily resistance level (quality: 40 days, meaning that the stock is crossing a resistance level set by the last 40 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 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 33. Currently there are 5 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 317,100 shares per day over the past 30 days. Teleflex has a market cap of $5.8 billion and is part of the health care sector and health services industry. The stock has a beta of 1.13 and a short float of 8.2% with 13.62 days to cover. Shares are up 22.2% 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, expanding profit margins and good cash flow from operations. 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:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 30.09% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • TELEFLEX INC has improved earnings per share by 7.8% 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 9.7% when compared to the same quarter one year prior, going from $34.96 million to $38.35 million.
  • The gross profit margin for TELEFLEX INC is rather high; currently it is at 57.56%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.93% is above that of the industry average.
  • Net operating cash flow has increased to $41.23 million or 27.12% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.96%.

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