Icon (ICLR) Marked As A Barbarian At The Gate

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

  • ICLR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.9 million.
  • ICLR has traded 331,409 shares today.
  • ICLR traded in a range 204.2% of the normal price range with a price range of $3.51.
  • ICLR traded above its daily resistance level (quality: 112 days, meaning that the stock is crossing a resistance level set by the last 112 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 ICLR:

ICON Public Limited Company, a contract research organization, provides outsourced development services to the pharmaceutical, biotechnology, and medical device industries in Ireland, rest of Europe, the United States, and internationally. ICLR has a PE ratio of 18. Currently there are 5 analysts that rate Icon a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Icon has been 519,500 shares per day over the past 30 days. Icon has a market cap of $4.0 billion and is part of the health care sector and health services industry. The stock has a beta of 0.62 and a short float of 4.8% with 7.58 days to cover. Shares are down 8.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Icon as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • ICON PLC has improved earnings per share by 24.4% 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, ICON PLC increased its bottom line by earning $3.98 versus $2.73 in the prior year. This year, the market expects an improvement in earnings ($4.71 versus $3.98).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Life Sciences Tools & Services industry average. The net income increased by 12.7% when compared to the same quarter one year prior, going from $55.87 million to $62.96 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.0%. Since the same quarter one year prior, revenues slightly increased by 3.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ICLR has a quick ratio of 1.60, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Life Sciences Tools & Services industry and the overall market, ICON PLC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

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