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 strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Sagent Pharmaceuticals as such a stock due to the following factors:
- SGNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
- SGNT is making at least a new 3-day high.
- SGNT has a PE ratio of 61.3.
- SGNT is mentioned 1.16 times per day on StockTwits.
- SGNT has not yet been mentioned on StockTwits today.
- SGNT is currently in the upper 20% of its 1-year range.
- SGNT is in the upper 35% of its 20-day range.
- SGNT is in the upper 45% of its 5-day range.
- SGNT is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on SGNT:
Sagent Pharmaceuticals, Inc., a specialty pharmaceutical company, develops, sources, manufactures, and markets pharmaceutical products, principally injectable-based generic equivalents to branded products in the United States. SGNT has a PE ratio of 61.3. Currently there is 1 analyst that rates Sagent Pharmaceuticals a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Sagent Pharmaceuticals has been 239,200 shares per day over the past 30 days. Sagent has a market cap of $840.8 million and is part of the health care sector and drugs industry. The stock has a beta of 1.83 and a short float of 13.3% with 12.17 days to cover. Shares are up 3.9% year-to-date as of the close of trading on Thursday.
rates Sagent Pharmaceuticals as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 16.1%. 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.
- SGNT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.62, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Pharmaceuticals industry and the overall market, SAGENT PHARMACEUTICALS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The gross profit margin for SAGENT PHARMACEUTICALS INC is currently lower than what is desirable, coming in at 32.65%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.43% significantly trails the industry average.
- You can view the full Sagent Pharmaceuticals Ratings Report.