Trade-Ideas LLC identified

Mead Johnson Nutrition

(

MJN

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

  • MJN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $203.9 million.
  • MJN traded 28,300 shares today in the pre-market hours as of 8:01 AM.
  • MJN is up 4.1% today from yesterday's close.

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More details on MJN:

Mead Johnson Nutrition Company manufactures, distributes, and sells infant formulas, children's nutrition, and other nutritional products. The stock currently has a dividend yield of 2.4%. MJN has a PE ratio of 21. Currently there are 3 analysts that rate Mead Johnson Nutrition a buy, 2 analysts rate it a sell, and 6 rate it a hold.

TST Recommends

The average volume for Mead Johnson Nutrition has been 2.2 million shares per day over the past 30 days. Mead Johnson Nutrition has a market cap of $13.6 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.44 and a short float of 7.5% with 4.55 days to cover. Shares are down 11.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mead Johnson Nutrition as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity 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:

  • 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 Food Products industry and the overall market, MEAD JOHNSON NUTRITION CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for MEAD JOHNSON NUTRITION CO is rather high; currently it is at 67.04%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.87% trails the industry average.
  • MJN, with its decline in revenue, underperformed when compared the industry average of 3.3%. Since the same quarter one year prior, revenues fell by 10.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • MEAD JOHNSON NUTRITION CO's earnings per share declined by 16.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MEAD JOHNSON NUTRITION CO increased its bottom line by earning $3.54 versus $3.35 in the prior year. For the next year, the market is expecting a contraction of 4.2% in earnings ($3.39 versus $3.54).
  • The debt-to-equity ratio is very high at 5.24 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, MJN's quick ratio is somewhat strong at 1.48, demonstrating the ability to handle short-term liquidity needs.

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