Trade-Ideas: Mylan (MYL) Is Today's Strong On High Relative Volume Stock
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 or Stephanie Link.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Mylan as such a stock due to the following factors:
- MYL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $209.5 million.
- MYL has traded 507,409 shares today.
- MYL is trading at 4.22 times the normal volume for the stock at this time of day.
- MYL is trading at a new high 4.04% 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 MYL:
Mylan Inc., a pharmaceutical company, develops, licenses, manufactures, markets, and distributes generic, branded generic, and specialty pharmaceuticals worldwide. It operates in two segments, Generics and Specialty. MYL has a PE ratio of 23.8. Currently there are 11 analysts that rate Mylan a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Mylan has been 3.2 million shares per day over the past 30 days. Mylan has a market cap of $21.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.83 and a short float of 6.7% with 6.77 days to cover. Shares are down 1.9% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Mylan as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 15.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, MYLAN NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income increased by 5.0% when compared to the same quarter one year prior, going from $180.23 million to $189.20 million.
- MYLAN NV's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MYLAN NV increased its bottom line by earning $2.34 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($4.15 versus $2.34).
- You can view the full Mylan Ratings Report.
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