Trade-Ideas LLC identified

C.R. Bard

(

BCR

) 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 C.R. Bard as such a stock due to the following factors:

  • BCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $92.7 million.
  • BCR has traded 120,800 shares today.
  • BCR traded in a range 281% of the normal price range with a price range of $7.28.
  • BCR traded below its daily resistance level (quality: 47 days, meaning that the stock is crossing a resistance level set by the last 47 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 BCR:

C. R. Bard, Inc., together with its subsidiaries, designs, manufactures, packages, distributes, and sells medical, surgical, diagnostic, and patient care devices worldwide. The stock currently has a dividend yield of 0.5%. BCR has a PE ratio of 154. Currently there are 2 analysts that rate C.R. Bard a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for C.R. Bard has been 459,700 shares per day over the past 30 days. C.R. Bard has a market cap of $16.8 billion and is part of the health care sector and health services industry. The stock has a beta of 0.65 and a short float of 1.7% with 3.19 days to cover. Shares are up 22.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates C.R. Bard as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, 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:

  • BCR's revenue growth has slightly outpaced the industry average of 5.7%. Since the same quarter one year prior, revenues slightly increased by 6.6%. 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.
  • The gross profit margin for BARD (C.R.) INC is rather high; currently it is at 68.90%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 13.30% trails the industry average.
  • Compared to its closing price of one year ago, BCR's share price has jumped by 29.86%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • BARD (C.R.) INC's earnings per share declined by 15.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, BARD (C.R.) INC reported lower earnings of $1.71 versus $3.68 in the prior year. This year, the market expects an improvement in earnings ($10.15 versus $1.71).
  • The debt-to-equity ratio of 1.14 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, BCR's quick ratio is somewhat strong at 1.03, demonstrating the ability to handle short-term liquidity needs.

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