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 Celldex Therapeutics ( CLDX) 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 Celldex Therapeutics as such a stock due to the following factors:

  • CLDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.6 million.
  • CLDX has traded 1.3 million shares today.
  • CLDX traded in a range 209.1% of the normal price range with a price range of $2.22.
  • CLDX traded above its daily resistance level (quality: 306 days, meaning that the stock is crossing a resistance level set by the last 306 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 CLDX:

Celldex Therapeutics, Inc., a biopharmaceutical company, focuses on the development, manufacture, and commercialization of novel therapeutics for human health care primarily in the United States. Currently there are 7 analysts that rate Celldex Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Celldex Therapeutics has been 2.8 million shares per day over the past 30 days. Celldex has a market cap of $1.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 3.37 and a short float of 24.4% with 6.11 days to cover. Shares are up 18.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Celldex Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • CELLDEX THERAPEUTICS INC's earnings per share declined by 6.9% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has managed its earnings and share float. We anticipate this stability to falter in the coming year and, in turn, the company to deliver lower earnings per share than prior full year. During the past fiscal year, CELLDEX THERAPEUTICS INC reported poor results of -$1.03 versus -$1.02 in the prior year. For the next year, the market is expecting a contraction of 28.1% in earnings (-$1.32 versus -$1.03).
  • 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 Biotechnology industry. The net income has decreased by 21.4% when compared to the same quarter one year ago, dropping from -$23.14 million to -$28.08 million.
  • Net operating cash flow has significantly decreased to -$26.59 million or 52.35% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Looking at the price performance of CLDX's shares over the past 12 months, there is not much good news to report: the stock is down 32.40%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, CELLDEX THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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