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 strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified POZEN as such a stock due to the following factors:
- POZN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.3 million.
- POZN has traded 56,848 shares today.
- POZN is trading at 2.30 times the normal volume for the stock at this time of day.
- POZN is trading at a new high 5.24% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in POZN with the Ticky from Trade-Ideas. See the FREE profile for POZN NOW at Trade-Ideas
More details on POZN:
POZEN Inc., a pharmaceutical company, develops products for the treatment of acute and chronic pain, and pain related conditions in the United States and internationally. POZN has a PE ratio of 28.1. Currently there is 1 analyst that rates POZEN a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for POZEN has been 294,700 shares per day over the past 30 days. POZEN has a market cap of $288.7 million and is part of the health care sector and drugs industry. Shares are up 10.6% year-to-date as of the close of trading on Friday.
rates POZEN 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, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- POZN's very impressive revenue growth greatly exceeded the industry average of 8.8%. Since the same quarter one year prior, revenues leaped by 191.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- POZN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 6.05, which clearly demonstrates the ability to cover short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Pharmaceuticals industry and the overall market, POZEN INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The gross profit margin for POZEN INC is rather high; currently it is at 51.95%. It has increased significantly from the same period last year. Along with this, the net profit margin of 89.54% significantly outperformed against the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
- You can view the full POZEN Ratings Report.