Trade-Ideas LLC identified CR Bard ( BCR) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) 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 $110.4 million.
  • BCR has traded 365,021 shares today.
  • BCR is trading at 4.17 times the normal volume for the stock at this time of day.
  • BCR crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 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 107. 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 478,200 shares per day over the past 30 days. CR Bard has a market cap of $13.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.60 and a short float of 1.7% with 1.88 days to cover. Shares are down 5.8% 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • BCR's revenue growth trails the industry average of 29.7%. Since the same quarter one year prior, revenues slightly increased by 4.3%. 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.
  • 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.16 is sturdy.
  • 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.
  • Net operating cash flow has decreased to $173.90 million or 31.64% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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