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 Mylan as such a stock due to the following factors:
- MYL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $226.4 million.
- MYL has a PE ratio of 35.2.
- MYL is currently in the upper 30% of its 1-year range.
- MYL is in the upper 25% of its 20-day range.
- MYL is in the upper 35% of its 5-day range.
- MYL is currently trading above yesterday's high.
- MYL has experienced a gap between today's open and yesterday's close of 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 MYL:
Mylan Inc., a pharmaceutical company, develops, licenses, manufactures, markets, and distributes generic, branded generic, and specialty pharmaceuticals worldwide. It operates in two segments, Generics and Specialty. MYL has a PE ratio of 35.2. Currently there are 9 analysts that rate Mylan a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Mylan has been 4.9 million shares per day over the past 30 days. Mylan has a market cap of $19.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.77 and a short float of 7.6% with 6.95 days to cover. Shares are up 17.2% year-to-date as of the close of trading on Wednesday.
rates Mylan as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins 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:
- The revenue growth came in higher than the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 8.0%. 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.
- Compared to its closing price of one year ago, MYL's share price has jumped by 30.54%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MYL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for MYLAN INC is rather high; currently it is at 52.57%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MYL's net profit margin of 6.81% significantly trails the industry average.
- MYLAN INC's earnings per share declined by 30.4% 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, MYLAN INC increased its bottom line by earning $1.58 versus $1.53 in the prior year. This year, the market expects an improvement in earnings ($3.49 versus $1.58).
- You can view the full Mylan Ratings Report.