Trade-Ideas: St Jude Medical (STJ) Is Today's Unusual Social Activity Stock

Trade-Ideas LLC identified St Jude Medical (STJ) as an unusual social activity candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

St Jude Medical

(

STJ

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified St Jude Medical as such a stock due to the following factors:

  • STJ has 17x the normal benchmarked social activity for this time of the day compared to its average of 1.77 mentions/day.
  • STJ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $173.3 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on STJ:

St. Jude Medical, Inc., together with its subsidiaries, develops, manufactures, and distributes cardiovascular medical devices for cardiac rhythm management, cardiovascular, and atrial fibrillation therapy areas worldwide. The stock currently has a dividend yield of 1.5%. STJ has a PE ratio of 32. Currently there are 2 analysts that rate St Jude Medical a buy, no analysts rate it a sell, and 19 rate it a hold.

The average volume for St Jude Medical has been 4.2 million shares per day over the past 30 days. St Jude Medical has a market cap of $22.9 billion and is part of the health care sector and health services industry. The stock has a beta of 1.14 and a short float of 2.8% with 3.84 days to cover. Shares are up 30.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates St Jude Medical as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.9%. Since the same quarter one year prior, revenues slightly increased by 7.7%. 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.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The gross profit margin for ST JUDE MEDICAL INC is currently very high, coming in at 72.65%. Regardless of STJ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.56% trails the industry average.
  • ST JUDE MEDICAL 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. 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, ST JUDE MEDICAL INC reported lower earnings of $3.08 versus $3.45 in the prior year. This year, the market expects an improvement in earnings ($4.06 versus $3.08).
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ST JUDE MEDICAL INC's return on equity exceeds that of both the industry average and the S&P 500.

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