Strong And Under The Radar: Dr Reddy Laboratories (RDY)

Trade-Ideas LLC identified Dr Reddy Laboratories (RDY) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Dr Reddy Laboratories

(

RDY

) as a strong and under the radar 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 $34.0 million.
  • RDY has traded 35.582099999999996953192749060690402984619140625 options contracts today.
  • RDY is making at least a new 3-day high.
  • RDY has a PE ratio of 31.
  • RDY is mentioned 1.03 times per day on StockTwits.
  • RDY has not yet been mentioned on StockTwits today.
  • RDY is currently in the upper 20% of its 1-year range.
  • RDY is in the upper 35% of its 20-day range.
  • RDY is in the upper 45% of its 5-day range.
  • RDY is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in RDY with the Ticky from Trade-Ideas. See the FREE profile for RDY NOW at Trade-Ideas

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 0.5%. RDY has a PE ratio of 31. 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 420,400 shares per day over the past 30 days. Dr Reddy has a market cap of $11.0 billion and is part of the health care sector and drugs industry. Shares are up 30.9% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Dr Reddy Laboratories 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 expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.4%. 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.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.97% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RDY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 22.5% when compared to the same quarter one year prior, going from $89.96 million to $110.21 million.
  • 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. Along with this, the net profit margin of 18.09% is above that of the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...