Trade-Ideas LLC identified

Dr Reddy Laboratories

(

RDY

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Dr Reddy Laboratories as such a stock due to the following factors:

  • RDY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.1 million.
  • RDY has traded 32.7760999999999995679900166578590869903564453125 options contracts today.
  • RDY is making at least a new 3-day high.
  • RDY has a PE ratio of 28.
  • RDY is mentioned 1.87 times per day on StockTwits.
  • RDY has not yet been mentioned on StockTwits today.
  • RDY is currently in the upper 20% of its 1-year range.
  • RDY is in the upper 35% of its 20-day range.
  • RDY is in the upper 45% of its 5-day range.
  • RDY is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on RDY:

Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide. It operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The stock currently has a dividend yield of 0.5%. RDY has a PE ratio of 28. Currently there are no analysts that rate Dr Reddy Laboratories a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Dr Reddy Laboratories has been 331,600 shares per day over the past 30 days. Dr Reddy has a market cap of $10.2 billion and is part of the health care sector and drugs industry. Shares are up 21.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Dr Reddy Laboratories as a

buy

. 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, reasonable valuation levels, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • RDY's revenue growth has slightly outpaced the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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 net income growth 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 increased by 7.4% when compared to the same quarter one year prior, going from $91.64 million to $98.40 million.

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