Charles River Laboratories International In (CRL) Stock Storming The Castle Today

Trade-Ideas LLC identified Charles River Laboratories International In ( CRL) 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 Charles River Laboratories International In as such a stock due to the following factors:

  • CRL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.8 million.
  • CRL has traded 494,864 shares today.
  • CRL is trading at 1.99 times the normal volume for the stock at this time of day.
  • CRL 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CRL with the Ticky from Trade-Ideas. See the FREE profile for CRL NOW at Trade-Ideas

More details on CRL:

Charles River Laboratories International, Inc., an early-stage contract research company, provides drug discovery and preclinical development services worldwide. CRL has a PE ratio of 22. Currently there are 7 analysts that rate Charles River Laboratories International In a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Charles River Laboratories International In has been 552,800 shares per day over the past 30 days. Charles River Laboratories International In has a market cap of $3.1 billion and is part of the health care sector and health services industry. The stock has a beta of 0.91 and a short float of 3.7% with 2.58 days to cover. Shares are down 15.2% year-to-date as of the close of trading on Tuesday.

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 Charles River Laboratories International In as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • CRL's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CHARLES RIVER LABS INTL INC has improved earnings per share by 16.2% 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, CHARLES RIVER LABS INTL INC increased its bottom line by earning $2.69 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($3.71 versus $2.69).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Life Sciences Tools & Services industry average. The net income increased by 16.7% when compared to the same quarter one year prior, going from $32.04 million to $37.38 million.
  • 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 Life Sciences Tools & Services industry and the overall market, CHARLES RIVER LABS INTL INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $87.95 million or 31.34% when compared to the same quarter last year. In addition, CHARLES RIVER LABS INTL INC has also modestly surpassed the industry average cash flow growth rate of 27.18%.

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.

More from Markets

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet

Tiffany & Co. Sees a Strong Market in Asia

Tiffany & Co. Sees a Strong Market in Asia