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 Illumina as such a stock due to the following factors:
- ILMN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $199.6 million.
- ILMN has a PE ratio of 115.5.
- ILMN is currently in the upper 30% of its 1-year range.
- ILMN is in the upper 25% of its 20-day range.
- ILMN is in the upper 35% of its 5-day range.
- ILMN is currently trading above yesterday's high.
- ILMN has experienced a gap between today's open and yesterday's close of 0.9%.
'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 ILMN:
Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. ILMN has a PE ratio of 115.5. Currently there are 9 analysts that rate Illumina a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Illumina has been 1.9 million shares per day over the past 30 days. Illumina has a market cap of $22.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.87 and a short float of 18.3% with 15.51 days to cover. Shares are up 56.2% year-to-date as of the close of trading on Friday.
rates Illumina as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- ILMN's revenue growth has slightly outpaced the industry average of 18.8%. Since the same quarter one year prior, revenues rose by 27.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.54, 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 1.20, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for ILLUMINA INC is currently very high, coming in at 74.28%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.25% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Life Sciences Tools & Services industry. The net income increased by 365.5% when compared to the same quarter one year prior, rising from -$22.59 million to $59.98 million.
- 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 Life Sciences Tools & Services industry and the overall market on the basis of return on equity, ILLUMINA INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Illumina Ratings Report.