Trade-Ideas LLC identified

GlaxoSmithKline

(

GSK

) as a pre-market mover with heavy volume 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 $167.0 million.
  • GSK traded 844,044 shares today in the pre-market hours as of 9:00 AM, representing 21.6% of its average daily volume.

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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 5.8%. GSK has a PE ratio of 14. Currently there are 3 analysts that rate GlaxoSmithKline a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for GlaxoSmithKline has been 3.8 million shares per day over the past 30 days. GlaxoSmithKline has a market cap of $91.3 billion and is part of the health care sector and drugs industry. Shares are down 2.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates GlaxoSmithKline as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • GSK's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 1.8%. 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 68.33%. 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, the net profit margin of 9.23% trails the industry average.
  • GLAXOSMITHKLINE PLC's earnings per share declined by 20.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, GLAXOSMITHKLINE PLC reported lower earnings of $1.77 versus $3.68 in the prior year. This year, the market expects an improvement in earnings ($78.31 versus $1.77).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income has decreased by 17.7% when compared to the same quarter one year ago, dropping from $1,147.39 million to $943.74 million.

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