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 or Stephanie Link.
Trade-Ideas LLC identified
) 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 VCA Antech as such a stock due to the following factors:
- WOOF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.2 million.
- WOOF has traded 160,724 shares today.
- WOOF traded in a range 215.8% of the normal price range with a price range of $1.75.
- WOOF traded above its daily resistance level (quality: 15 days, meaning that the stock is crossing a resistance level set by the last 15 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 WOOF:
VCA Antech, Inc. operates as an animal healthcare company in the United States and Canada. It operates through two segments, Animal Hospital and Laboratory. WOOF has a PE ratio of 22.4. Currently there are 4 analysts that rate VCA Antech a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for VCA Antech has been 664,500 shares per day over the past 30 days. VCA Antech has a market cap of $2.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.54 and a short float of 0.6% with 0.77 days to cover. Shares are down 4% year-to-date as of the close of trading on Thursday.
rates VCA Antech as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 142.42% and other important driving factors, this stock has surged by 42.85% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- VCA ANTECH INC reported significant earnings per share improvement 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, VCA ANTECH INC increased its bottom line by earning $1.53 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($1.83 versus $1.53).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 142.6% when compared to the same quarter one year prior, rising from -$58.05 million to $24.72 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 4.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.91 is somewhat weak and could be cause for future problems.
- You can view the full VCA Antech Ratings Report.