Trade-Ideas LLC identified

Novartis

(

NVS

) 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 $152.7 million.
  • NVS traded 170,541 shares today in the pre-market hours as of 8:58 AM.
  • NVS is up 2.6% today from yesterday's close.

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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 2.4%. NVS has a PE ratio of 25. 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 2.0 million shares per day over the past 30 days. Novartis has a market cap of $224.2 billion and is part of the health care sector and drugs industry. Shares are down 0.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Novartis as a

buy

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance, 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 sub par growth in net income.

Highlights from the ratings report include:

  • After a year of stock price fluctuations, the net result is that NVS's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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's earnings per share declined by 30.3% 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, 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 ($5.15 versus $4.32).
  • NVS's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.50 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for NOVARTIS AG is rather high; currently it is at 64.90%. Regardless of NVS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NVS's net profit margin of 14.46% compares favorably to the industry average.

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