Dr Reddy Laboratories (RDY) Showing Signs Of Perilous Reversal Today
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Dr Reddy Laboratories as such a stock due to the following factors:
- RDY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.1 million.
- RDY has traded 837,010 shares today.
- RDY is down 3.1% today.
- RDY was up 5.4% yesterday.
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More details on RDY:
Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide. It operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The stock currently has a dividend yield of 0.6%. RDY has a PE ratio of 24. Currently there are no analysts that rate Dr Reddy Laboratories a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Dr Reddy Laboratories has been 489,600 shares per day over the past 30 days. Dr Reddy has a market cap of $8.5 billion and is part of the health care sector and drugs industry. Shares are up 4.1% year-to-date as of the close of trading on Friday.
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Analysis:
rates Dr Reddy Laboratories as a
. 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, reasonable valuation levels, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 8.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels.
- The gross profit margin for DR REDDY'S LABORATORIES LTD is rather high; currently it is at 61.34%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, RDY's net profit margin of 18.09% significantly trails the industry average.
- DR REDDY'S LABORATORIES LTD has improved earnings per share by 23.1% 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, DR REDDY'S LABORATORIES LTD reported lower earnings of $2.07 versus $2.10 in the prior year. This year, the market expects an improvement in earnings ($2.39 versus $2.07).
- You can view the full Dr Reddy Laboratories Ratings Report.
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