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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Thermo Fisher Scientific as such a stock due to the following factors:
- TMO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $252.0 million.
- TMO has traded 1.6 million shares today.
- TMO traded in a range 240.4% of the normal price range with a price range of $5.17.
- TMO traded below its daily resistance level (quality: 45 days, meaning that the stock is crossing a resistance level set by the last 45 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on TMO:
Thermo Fisher Scientific Inc. provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacturing, analysis, discovery, and diagnostics in the United States and internationally. The stock currently has a dividend yield of 0.5%. TMO has a PE ratio of 35.4. Currently there are 14 analysts that rate Thermo Fisher Scientific a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Thermo Fisher Scientific has been 2.5 million shares per day over the past 30 days. Thermo Fisher Scientific has a market cap of $48.2 billion and is part of the health care sector and health services industry. The stock has a beta of 1.06 and a short float of 1.6% with 2.14 days to cover. Shares are up 8.3% year-to-date as of the close of trading on Monday.
rates Thermo Fisher Scientific as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, TMO's share price has jumped by 59.31%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TMO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 12.9%. Since the same quarter one year prior, revenues slightly increased by 6.4%. 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 gross profit margin for THERMO FISHER SCIENTIFIC INC is rather high; currently it is at 61.66%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.86% trails the industry average.
- Net operating cash flow has increased to $728.50 million or 10.36% when compared to the same quarter last year. Despite an increase in cash flow, THERMO FISHER SCIENTIFIC INC's average is still marginally south of the industry average growth rate of 18.18%.
- You can view the full Thermo Fisher Scientific Ratings Report.