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

  • QGEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.3 million.
  • QGEN has traded 900,481 shares today.
  • QGEN traded in a range 234.3% of the normal price range with a price range of $0.79.
  • QGEN traded above its daily resistance level (quality: 203 days, meaning that the stock is crossing a resistance level set by the last 203 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 QGEN:

QIAGEN N.V. provides sample to insight solutions that transform biological materials into valuable molecular insights worldwide. QGEN has a PE ratio of 43. Currently there are 2 analysts that rate Qiagen a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Qiagen has been 1.1 million shares per day over the past 30 days. Qiagen has a market cap of $5.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.96 and a short float of 2.6% with 5.78 days to cover. Shares are down 15.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Qiagen as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.97, which clearly demonstrates the ability to cover short-term cash needs.
  • QIAGEN NV's earnings per share declined by 25.0% 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, QIAGEN NV increased its bottom line by earning $0.53 versus $0.49 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.53).
  • The gross profit margin for QIAGEN NV is currently very high, coming in at 76.67%. Regardless of QGEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.98% trails the industry average.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, QGEN has underperformed the S&P 500 Index, declining 16.92% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Life Sciences Tools & Services industry. The net income has decreased by 23.6% when compared to the same quarter one year ago, dropping from $19.49 million to $14.88 million.

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