Trade-Ideas LLC identified

Teva Pharmaceutical Industries

(

TEVA

) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Teva Pharmaceutical Industries as such a stock due to the following factors:

  • TEVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $418.2 million.
  • TEVA has traded 1.6 million shares today.
  • TEVA is trading at 1.59 times the normal volume for the stock at this time of day.
  • TEVA crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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.

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More details on TEVA:

TheStreet Recommends

Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic, specialty, and other pharmaceutical products worldwide. The company operates in two segments, Generic Medicines and Specialty Medicines. The stock currently has a dividend yield of 1.9%. TEVA has a PE ratio of 4. Currently there are 12 analysts that rate Teva Pharmaceutical Industries a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Teva Pharmaceutical Industries has been 4.9 million shares per day over the past 30 days. Teva has a market cap of $50.1 billion and is part of the health care sector and drugs industry. Shares are up 3.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Teva Pharmaceutical Industries as a

buy

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Net operating cash flow has increased to $1,480.00 million or 40.55% when compared to the same quarter last year. In addition, TEVA PHARMACEUTICALS has also vastly surpassed the industry average cash flow growth rate of -45.83%.
  • The gross profit margin for TEVA PHARMACEUTICALS is rather high; currently it is at 64.78%. 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 10.85% trails the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
  • TEVA PHARMACEUTICALS's earnings per share declined by 27.6% 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, TEVA PHARMACEUTICALS increased its bottom line by earning $3.56 versus $1.50 in the prior year. This year, the market expects an improvement in earnings ($5.33 versus $3.56).

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