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 momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Celgene Corporation as such a stock due to the following factors:
- CELG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $518.4 million.
- CELG has a PE ratio of 44.0.
- CELG is currently in the upper 30% of its 1-year range.
- CELG is in the upper 25% of its 20-day range.
- CELG is in the upper 35% of its 5-day range.
- CELG is currently trading above yesterday's high.
- CELG has experienced a gap between today's open and yesterday's close of 0.2%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on CELG:
Celgene Corporation discovers, develops, and commercializes therapies for cancer and immune-inflammatory related diseases in the United States and Europe. CELG has a PE ratio of 44.0. Currently there are 20 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Celgene Corporation has been 2.8 million shares per day over the past 30 days. Celgene has a market cap of $63.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.82 and a short float of 1.1% with 1.39 days to cover. Shares are up 95% year to date as of the close of trading on Tuesday.
rates Celgene Corporation as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- CELG's revenue growth has slightly outpaced the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 18.0%. 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 gross profit margin for CELGENE CORP is currently very high, coming in at 96.52%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 22.24% trails the industry average.
- CELG's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.58 is very high and demonstrates very strong liquidity.
- Compared to its closing price of one year ago, CELG's share price has jumped by 100.66%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- CELGENE CORP's earnings per share declined by 10.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CELGENE CORP increased its bottom line by earning $3.30 versus $2.85 in the prior year. This year, the market expects an improvement in earnings ($5.98 versus $3.30).
- You can view the full Celgene Corporation Ratings Report.