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 momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Celgene Corporation as such a stock due to the following factors:
- CELG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $419.6 million.
- CELG has a PE ratio of 40.9.
- CELG is currently in the upper 30% of its 1-year range.
- CELG is in the upper 25% of its 20-day range.
- CELG is in the upper 35% of its 5-day range.
- CELG is currently trading above yesterday's high.
- CELG has experienced a gap between today's open and yesterday's close of 0.4%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on CELG:
Celgene Corporation discovers, develops, and commercializes therapies for cancer and immune-inflammatory related diseases in the United States and Europe. CELG has a PE ratio of 40.9. Currently there are 20 analysts that rate Celgene Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Celgene Corporation has been 2.5 million shares per day over the past 30 days. Celgene has a market cap of $60.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.91 and a short float of 1% with 1.76 days to cover. Shares are up 86.6% year to date as of the close of trading on Wednesday.
rates Celgene Corporation as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity 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:
- CELG's revenue growth has slightly outpaced the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 17.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CELGENE CORP has improved earnings per share by 35.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CELGENE CORP increased its bottom line by earning $3.30 versus $2.85 in the prior year. This year, the market expects an improvement in earnings ($5.96 versus $3.30).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 30.1% when compared to the same quarter one year prior, rising from $367.37 million to $478.10 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Biotechnology industry and the overall market, CELGENE CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The gross profit margin for CELGENE CORP is currently very high, coming in at 96.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.89% is above that of the industry average.
- You can view the full Celgene Corporation Ratings Report.