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 C.R. Bard ( BCR) 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 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 $64.9 million.
- BCR has traded 293,839 shares today.
- BCR traded in a range 213.9% of the normal price range with a price range of $2.97.
- BCR traded above its daily resistance level (quality: 20 days, meaning that the stock is crossing a resistance level set by the last 20 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in BCR with the Ticky from Trade-Ideas. See the FREE profile for BCR NOW at Trade-Ideas More details on BCR: C. R. Bard, Inc. designs, manufactures, packages, distributes, and sells medical, surgical, diagnostic, and patient care devices worldwide. The stock currently has a dividend yield of 0.7%. BCR has a PE ratio of 54.6. Currently there are 5 analysts that rate C.R. Bard a buy, 1 analyst rates it a sell, and 13 rate it a hold. The average volume for C.R. Bard has been 475,100 shares per day over the past 30 days. C.R. Bard has a market cap of $9.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.70 and a short float of 3% with 4.45 days to cover. Shares are up 19.5% year to date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates C.R. Bard as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share. Highlights from the ratings report include:
- BCR's revenue growth has slightly outpaced the industry average of 1.8%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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.
- Net operating cash flow has slightly increased to $74.70 million or 9.85% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -37.82%.
- BCR's debt-to-equity ratio of 0.95 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.66 is very high and demonstrates very strong liquidity.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 220.7% when compared to the same quarter one year ago, falling from $133.90 million to -$161.60 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Health Care Equipment & Supplies industry and the overall market, BARD (C.R.) INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full C.R. Bard Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.