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 Bio-Reference Laboratories ( BRLI) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Bio-Reference Laboratories as such a stock due to the following factors:

  • BRLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.4 million.
  • BRLI has traded 186,128 shares today.
  • BRLI is trading at 29.32 times the normal volume for the stock at this time of day.
  • BRLI is trading at a new low 7.07% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on BRLI:

Bio-Reference Laboratories, Inc. provides clinical laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases in the United States. BRLI has a PE ratio of 20.9. Currently there are no analysts that rate Bio-Reference Laboratories a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Bio-Reference Laboratories has been 259,100 shares per day over the past 30 days. Bio-Reference has a market cap of $976.8 million and is part of the health care sector and health services industry. The stock has a beta of 0.52 and a short float of 18.8% with 16.69 days to cover. Shares are up 13.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bio-Reference Laboratories as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 65.00% and other important driving factors, this stock has surged by 35.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BRLI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • BIO REFERENCE LABS 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, BIO REFERENCE LABS increased its bottom line by earning $1.69 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($2.02 versus $1.69).
  • 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 64.4% when compared to the same quarter one year prior, rising from $11.12 million to $18.28 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 18.4%. Since the same quarter one year prior, revenues rose by 18.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BRLI's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BRLI has a quick ratio of 1.94, which demonstrates the ability of the company to cover short-term liquidity needs.

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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