Trade-Ideas: Bristol-Myers Squibb Company (BMY) Is Today's "Barbarian At The Gate" Stock
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Bristol-Myers Squibb Company as such a stock due to the following factors:
- BMY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $410.8 million.
- BMY has traded 2.2 million shares today.
- BMY traded in a range 211.5% of the normal price range with a price range of $3.56.
- BMY traded above its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on BMY:
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. The stock currently has a dividend yield of 2.3%. BMY has a PE ratio of 62. Currently there are 8 analysts that rate Bristol-Myers Squibb Company a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Bristol-Myers Squibb Company has been 7.8 million shares per day over the past 30 days. Bristol-Myers Squibb has a market cap of $109.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.09 and a short float of 1.5% with 3.90 days to cover. Shares are up 11.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Bristol-Myers Squibb Company 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, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- BMY's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.14, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for BRISTOL-MYERS SQUIBB CO is currently very high, coming in at 77.81%. Regardless of BMY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BMY's net profit margin of 17.35% compares favorably to the industry average.
- BRISTOL-MYERS SQUIBB CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BRISTOL-MYERS SQUIBB CO reported lower earnings of $1.20 versus $1.55 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.20).
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income has decreased by 2.1% when compared to the same quarter one year ago, dropping from $721.00 million to $706.00 million.
- You can view the full Bristol-Myers Squibb Company Ratings Report.
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