Strong On High Volume: TherapeuticsMD (TXMD)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified TherapeuticsMD as such a stock due to the following factors:
- TXMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.5 million.
- TXMD has traded 88,920 shares today.
- TXMD is trading at 2.04 times the normal volume for the stock at this time of day.
- TXMD is trading at a new high 4.23% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on TXMD:
TherapeuticsMD, Inc., a U.S. women's healthcare product company, manufactures and distributes branded and generic prescription prenatal vitamins, as well as over-the-counter, vitamins, and cosmetics. Currently there are 4 analysts that rate TherapeuticsMD a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for TherapeuticsMD has been 970,200 shares per day over the past 30 days. TherapeuticsMD has a market cap of $987.4 million and is part of the health care sector and drugs industry. The stock has a beta of 0.89 and a short float of 20.6% with 13.13 days to cover. Shares are up 27.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates TherapeuticsMD as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- 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 Pharmaceuticals industry. The net income has significantly decreased by 94.5% when compared to the same quarter one year ago, falling from -$8.38 million to -$16.30 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, THERAPEUTICSMD INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$15.29 million or 213.53% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- THERAPEUTICSMD INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, THERAPEUTICSMD INC reported poor results of -$0.35 versus -$0.22 in the prior year. This year, the market expects earnings to be in line with last year (-$0.35 versus -$0.35).
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.05%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 66.66% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full TherapeuticsMD Ratings Report.
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