Trade-Ideas LLC identified

Medicines Company

(

MDCO

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Medicines Company as such a stock due to the following factors:

  • MDCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.0 million.
  • MDCO traded 447,021 shares today in the pre-market hours as of 8:22 AM, representing 25.4% of its average daily volume.

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More details on MDCO:

The Medicines Company provides medicines for patients in acute and intensive care hospitals worldwide. Currently there are 3 analysts that rate Medicines Company a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Medicines Company has been 1.3 million shares per day over the past 30 days. Medicines has a market cap of $2.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.62 and a short float of 22.6% with 6.35 days to cover. Shares are up 14.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Medicines Company as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MDCO has a quick ratio of 2.47, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for MEDICINES CO is rather high; currently it is at 67.25%. 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 -51.49% is in-line with the industry average.
  • 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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 803.5% when compared to the same quarter one year ago, falling from -$5.16 million to -$46.59 million.
  • 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 Pharmaceuticals industry and the overall market, MEDICINES CO's return on equity significantly trails that of both the industry average and the S&P 500.

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