Heavy Volume And Pre-Market Movement For Novartis (NVS)
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Novartis as such a stock due to the following factors:
- NVS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $144.2 million.
- NVS traded 249,538 shares today in the pre-market hours as of 9:11 AM, representing 15.2% of its average daily volume.
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More details on NVS:
Novartis AG researches, develops, manufactures, and markets a range of healthcare products worldwide. The stock currently has a dividend yield of 2.6%. NVS has a PE ratio of 23. Currently there are 6 analysts that rate Novartis a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Novartis has been 1.9 million shares per day over the past 30 days. Novartis has a market cap of $208.1 billion and is part of the health care sector and drugs industry. Shares are down 6.9% year-to-date as of the close of trading on Friday.
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Analysis:
rates Novartis as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- NOVARTIS AG's earnings per share declined by 40.8% 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, NOVARTIS AG increased its bottom line by earning $4.32 versus $3.72 in the prior year. This year, the market expects an improvement in earnings ($5.08 versus $4.32).
- NVS's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that NVS's debt-to-equity ratio is low, the quick ratio, which is currently 0.52, displays a potential problem in covering short-term cash needs.
- The gross profit margin for NOVARTIS AG is rather high; currently it is at 64.51%. Regardless of NVS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NVS's net profit margin of 15.39% is significantly lower than the industry average.
- NVS, with its decline in revenue, slightly underperformed the industry average of 3.7%. Since the same quarter one year prior, revenues slightly dropped by 6.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of NOVARTIS AG has not done very well: it is down 6.26% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- You can view the full Novartis Ratings Report.
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