Trade-Ideas LLC identified Dentsply Sirona ( XRAY) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Dentsply Sirona as such a stock due to the following factors:

  • XRAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $91.8 million.
  • XRAY has traded 138,525 shares today.
  • XRAY traded in a range 218.5% of the normal price range with a price range of $1.96.
  • XRAY traded below its daily resistance level (quality: 8 days, meaning that the stock is crossing a resistance level set by the last 8 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on XRAY:

DENTSPLY SIRONA Inc. designs, develops, manufactures, and markets various consumable dental products for the professional dental market in the United States and internationally. The stock currently has a dividend yield of 0.5%. XRAY has a PE ratio of 31. Currently there are 5 analysts that rate Dentsply Sirona a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Dentsply Sirona has been 1.6 million shares per day over the past 30 days. Dentsply Sirona has a market cap of $14.8 billion and is part of the health care sector and health services industry. The stock has a beta of 1.30 and a short float of 3.2% with 5.07 days to cover. Shares are up 5.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dentsply Sirona as a buy. 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, solid stock price performance, increase in net income and growth in earnings per share. 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 4.8%. Since the same quarter one year prior, revenues rose by 17.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • XRAY's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.11, which illustrates the ability to avoid short-term cash problems.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Health Care Equipment & Supplies industry average. The net income increased by 95.4% when compared to the same quarter one year prior, rising from $63.96 million to $125.00 million.
  • DENTSPLY SIRONA INC reported significant earnings per share improvement 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, DENTSPLY SIRONA INC reported lower earnings of $1.76 versus $2.23 in the prior year. This year, the market expects an improvement in earnings ($2.75 versus $1.76).

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