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 an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Forest Laboratories as such a stock due to the following factors:
- FRX has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.35 mentions/day.
- FRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $202.3 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on FRX:
Forest Laboratories, Inc. develops, manufactures, and sells branded forms of ethical drug products in the United States and Europe. FRX has a PE ratio of 166.7. Currently there are 7 analysts that rate Forest Laboratories a buy, no analysts rate it a sell, and 13 rate it a hold.
The average volume for Forest Laboratories has been 3.7 million shares per day over the past 30 days. Forest has a market cap of $24.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.92 and a short float of 1.6% with 1.45 days to cover. Shares are up 49.7% year-to-date as of the close of trading on Friday.
rates Forest Laboratories as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 22.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FRX's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.26, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 111.7% when compared to the same quarter one year prior, rising from -$153.61 million to $17.96 million.
- Net operating cash flow has significantly increased by 868.95% to $202.93 million when compared to the same quarter last year. In addition, FOREST LABORATORIES has also vastly surpassed the industry average cash flow growth rate of -22.12%.
- The gross profit margin for FOREST LABORATORIES is currently very high, coming in at 84.89%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FRX's net profit margin of 2.04% significantly trails the industry average.
- You can view the full Forest Laboratories Ratings Report.