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.

Trade-Ideas LLC identified BJ's Restaurants ( BJRI) 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 BJ's Restaurants as such a stock due to the following factors:

  • BJRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.9 million.
  • BJRI has traded 117,719 shares today.
  • BJRI traded in a range 304.9% of the normal price range with a price range of $3.46.
  • BJRI traded above its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 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 BJRI with the Ticky from Trade-Ideas. See the FREE profile for BJRI NOW at Trade-Ideas

More details on BJRI:

BJ's Restaurants, Inc. owns and operates casual dining restaurants in the Unites States. The company's restaurants offer pizzas, beers, appetizers, entrees, pastas, sandwiches, salads, and desserts. BJRI has a PE ratio of 42. Currently there are 5 analysts that rate BJ's Restaurants a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for BJ's Restaurants has been 299,800 shares per day over the past 30 days. BJ's has a market cap of $1.3 billion and is part of the services sector and leisure industry. The stock has a beta of 1.87 and a short float of 17.5% with 7.68 days to cover. Shares are up 0.3% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BJ's Restaurants as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BJ'S RESTAURANTS 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 year. We feel that this trend should continue. During the past fiscal year, BJ'S RESTAURANTS INC increased its bottom line by earning $0.98 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $0.98).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 106.4% when compared to the same quarter one year prior, rising from $4.66 million to $9.62 million.
  • Net operating cash flow has slightly increased to $30.83 million or 4.92% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.45%.
  • Powered by its strong earnings growth of 125.00% and other important driving factors, this stock has surged by 50.03% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.