Trade-Ideas LLC identified Bio-Techne ( TECH) 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 Bio-Techne as such a stock due to the following factors:

  • TECH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.1 million.
  • TECH has traded 272,134 shares today.
  • TECH traded in a range 314.2% of the normal price range with a price range of $6.37.
  • TECH traded above its daily resistance level (quality: 255 days, meaning that the stock is crossing a resistance level set by the last 255 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 TECH: Bio-Techne Corporation, together with its subsidiaries, develops, manufactures, and sells biotechnology reagents, instruments, and clinical diagnostic products worldwide. The company operates through three segments: Biotechnology, Clinical Controls, and Protein Platforms. The stock currently has a dividend yield of 1.4%. TECH has a PE ratio of 35. Currently there are 3 analysts that rate Bio-Techne a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Bio-Techne has been 243,700 shares per day over the past 30 days. Bio-Techne has a market cap of $3.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.74 and a short float of 5.2% with 9.58 days to cover. Shares are up 3.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bio-Techne as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:

  • TECH's revenue growth has slightly outpaced the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 8.0%. 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.
  • TECH's debt-to-equity ratio is very low at 0.19 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 5.06, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for BIO-TECHNE CORP is currently very high, coming in at 70.15%. Regardless of TECH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TECH's net profit margin of 21.38% significantly outperformed against the industry.
  • Net operating cash flow has slightly increased to $38.54 million or 9.23% when compared to the same quarter last year. Despite an increase in cash flow of 9.23%, BIO-TECHNE CORP is still growing at a significantly lower rate than the industry average of 86.87%.
  • BIO-TECHNE CORP's earnings per share declined by 22.5% 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 year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BIO-TECHNE CORP reported lower earnings of $2.89 versus $2.99 in the prior year. This year, the market expects an improvement in earnings ($3.47 versus $2.89).

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