Trade-Ideas LLC identified CR Bard ( BCR) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified CR 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 $107.0 million.
  • BCR has traded 275,123 shares today.
  • BCR traded in a range 210.1% of the normal price range with a price range of $9.58.
  • BCR traded below its daily resistance level (quality: 94 days, meaning that the stock is crossing a resistance level set by the last 94 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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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 0.5%. BCR has a PE ratio of 42. Currently there are 3 analysts that rate CR Bard a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for CR Bard has been 626,800 shares per day over the past 30 days. CR Bard has a market cap of $14.1 billion and is part of the health care sector and health services industry. The stock has a beta of 0.85 and a short float of 1.9% with 2.29 days to cover. Shares are up 12.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CR Bard as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 54.2% when compared to the same quarter one year prior, rising from -$119.40 million to -$54.70 million.
  • The revenue growth significantly trails the industry average of 35.7%. Since the same quarter one year prior, revenues slightly increased by 4.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BARD (C.R.) INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BARD (C.R.) INC reported lower earnings of $3.68 versus $8.48 in the prior year. This year, the market expects an improvement in earnings ($9.07 versus $3.68).
  • Powered by its strong earnings growth of 53.45% and other important driving factors, this stock has surged by 30.55% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • 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. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market on the basis of return on equity, BARD (C.R.) INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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