Medivation (MDVN) Highlighted As Momo Momentum Stock
Trade-Ideas LLC identified Medivation ( MDVN) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Medivation as such a stock due to the following factors:
- MDVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $257.9 million.
- MDVN has a PE ratio of 39.
- MDVN is currently in the upper 30% of its 1-year range.
- MDVN is in the upper 25% of its 20-day range.
- MDVN is in the upper 35% of its 5-day range.
- MDVN is currently trading above yesterday's high.
- MDVN has experienced a gap between today's open and yesterday's close of 3.4%.
'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 MDVN: Medivation, Inc., a biopharmaceutical company, focuses on the development and commercialization of medical therapies to treat serious diseases in the United States. It offers XTANDI for the treatment of post-chemotherapy metastatic castration-resistant prostate cancer (CRPC) patients. MDVN has a PE ratio of 39. Currently there are 11 analysts that rate Medivation a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Medivation has been 3.7 million shares per day over the past 30 days. Medivation has a market cap of $9.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.38 and a short float of 3.4% with 0.81 days to cover. Shares are up 19.1% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Medivation 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 and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 37.5%. 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.
- MDVN's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MDVN has a quick ratio of 2.32, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for MEDIVATION INC is rather high; currently it is at 62.47%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 37.72% is above that of the industry average.
- Net operating cash flow has decreased to $109.98 million or 33.05% when compared to the same quarter last year. Despite a decrease in cash flow MEDIVATION INC is still fairing well by exceeding its industry average cash flow growth rate of -49.98%.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to other companies in the Biotechnology industry and the overall market on the basis of return on equity, MEDIVATION INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- You can view the full Medivation Ratings Report.
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