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

Quintiles Transnational Holdings

(

Q

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Quintiles Transnational Holdings as such a stock due to the following factors:

  • Q has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.6 million.
  • Q traded 168,762 shares today in the pre-market hours as of 8:36 AM, representing 29.2% of its average daily volume.

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More details on Q:

Quintiles Transnational Holdings Inc., through its subsidiary, Quintiles Transnational Corp., provides biopharmaceutical development services and commercial outsourcing services in the Americas, Europe, Africa, and the Asia-Pacific. Q has a PE ratio of 28. Currently there are 14 analysts that rate Quintiles Transnational Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Quintiles Transnational Holdings has been 737,500 shares per day over the past 30 days. Quintiles Transnational has a market cap of $9.6 billion and is part of the health care sector and health services industry. The stock has a beta of 0.57 and a short float of 5.6% with 5.79 days to cover. Shares are up 34.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Quintiles Transnational Holdings as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Life Sciences Tools & Services industry average, but is greater than that of the S&P 500. The net income has decreased by 0.2% when compared to the same quarter one year ago, dropping from $85.12 million to $84.95 million.
  • The gross profit margin for QUINTILES TRANSNATIONAL HLDG is currently lower than what is desirable, coming in at 29.13%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.88% trails that of the industry average.
  • Net operating cash flow has decreased to $50.76 million or 24.38% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, QUINTILES TRANSNATIONAL HLDG has marginally lower results.
  • QUINTILES TRANSNATIONAL HLDG's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, QUINTILES TRANSNATIONAL HLDG increased its bottom line by earning $2.72 versus $1.35 in the prior year. This year, the market expects an improvement in earnings ($3.08 versus $2.72).
  • Investors have driven up the company's shares by 41.40% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in Q do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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