Trade-Ideas LLC identified Pentair ( PNR) 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 Pentair as such a stock due to the following factors:

  • PNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $79.6 million.
  • PNR has traded 621,218 shares today.
  • PNR traded in a range 245.5% of the normal price range with a price range of $3.22.
  • PNR traded above its daily resistance level (quality: 289 days, meaning that the stock is crossing a resistance level set by the last 289 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.

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More details on PNR:

Pentair plc operates as a diversified industrial manufacturing company in the United States, Europe, and internationally. The company operates through Valves & Controls, Technical Solutions, Flow & Filtration Solutions, and Water Quality Systems segments. The stock currently has a dividend yield of 2.3%. PNR has a PE ratio of 201. Currently there are 4 analysts that rate Pentair a buy, 1 analyst rates it a sell, and 15 rate it a hold.

The average volume for Pentair has been 1.3 million shares per day over the past 30 days. Pentair has a market cap of $10.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.43 and a short float of 6.1% with 7.69 days to cover. Shares are up 21.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pentair as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 12.5%. Since the same quarter one year prior, revenues slightly increased by 6.8%. 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.
  • Net operating cash flow has significantly increased by 88.73% to -$15.00 million when compared to the same quarter last year. In addition, PENTAIR PLC has also vastly surpassed the industry average cash flow growth rate of -8.39%.
  • 38.50% is the gross profit margin for PENTAIR PLC which we consider to be strong. Regardless of PNR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PNR's net profit margin of 6.81% compares favorably to the industry average.
  • Even though the current debt-to-equity ratio is 1.18, it is still below the industry average, suggesting that this level of debt is acceptable within the Machinery industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.06 is sturdy.
  • PENTAIR PLC's earnings per share declined by 9.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, PENTAIR PLC swung to a loss, reporting -$0.39 versus $3.14 in the prior year. This year, the market expects an improvement in earnings ($4.10 versus -$0.39).

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