Trade-Ideas LLC identified

GlaxoSmithKline

(

GSK

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified GlaxoSmithKline as such a stock due to the following factors:

  • GSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $164.8 million.
  • GSK traded 68,879 shares today in the pre-market hours as of 8:27 AM.
  • GSK is up 2.1% today from Friday's close.

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More details on GSK:

GlaxoSmithKline plc creates, discovers, develops, manufactures, and markets pharmaceutical products, including vaccines, over-the-counter medicines, and health-related consumer products worldwide. The stock currently has a dividend yield of 6.1%. GSK has a PE ratio of 13. Currently there are 4 analysts that rate GlaxoSmithKline a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for GlaxoSmithKline has been 3.5 million shares per day over the past 30 days. GlaxoSmithKline has a market cap of $95.1 billion and is part of the health care sector and drugs industry. Shares are down 0.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates GlaxoSmithKline as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • GSK's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 2.7%. 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.
  • 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. Compared to other companies in the Pharmaceuticals industry and the overall market, GLAXOSMITHKLINE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for GLAXOSMITHKLINE PLC is rather high; currently it is at 62.96%. Regardless of GSK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GSK's net profit margin of 3.93% is significantly lower than the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 41.9% when compared to the same quarter one year ago, falling from $533.43 million to $309.90 million.
  • The debt-to-equity ratio is very high at 3.04 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, GSK maintains a poor quick ratio of 0.94, which illustrates the inability to avoid short-term cash problems.

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