Novartis (NVS) Leading In Pre-Market Activity
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.
Trade-Ideas LLC identified
(
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Novartis as such a stock due to the following factors:
- NVS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $174.6 million.
- NVS traded 13,287 shares today in the pre-market hours as of 9:14 AM.
- NVS is up 2% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in NVS with the Ticky from Trade-Ideas. See the FREE profile for NVS NOW at Trade-Ideas
More details on NVS:
Novartis AG researches, develops, manufactures, and markets a range of healthcare products worldwide. The stock currently has a dividend yield of 2.5%. NVS has a PE ratio of 26.4. Currently there are 6 analysts that rate Novartis a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Novartis has been 2.1 million shares per day over the past 30 days. Novartis has a market cap of $234.1 billion and is part of the health care sector and drugs industry. Shares are up 8.3% year-to-date as of the close of trading on Wednesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Novartis as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, notable return on equity, reasonable valuation levels and good cash flow from operations. 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 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.
- NOVARTIS AG has improved earnings per share by 23.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NOVARTIS AG increased its bottom line by earning $4.32 versus $3.72 in the prior year. This year, the market expects an improvement in earnings ($5.25 versus $4.32).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, NOVARTIS AG's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $5,205.00 million or 16.96% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.86%.
- You can view the full Novartis Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
null
