Trade-Ideas LLC identified

Novartis

(

NVS

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Novartis as such a stock due to the following factors:

  • NVS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.6 million.
  • NVS traded 10,026 shares today in the pre-market hours as of 8:40 AM.
  • NVS is down 2.1% today from Thursday's close.

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More details on NVS:

Novartis AG researches, develops, manufactures, and markets a range of healthcare products worldwide. It operates through three segments: Pharmaceuticals, Alcon, and Sandoz. The stock currently has a dividend yield of 3.2%. NVS has a PE ratio of 2. Currently there are 4 analysts that rate Novartis a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Novartis has been 2.4 million shares per day over the past 30 days. Novartis has a market cap of $174.0 billion and is part of the health care sector and drugs industry. Shares are down 14.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Novartis as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • NVS's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that NVS's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
  • The gross profit margin for NOVARTIS AG is rather high; currently it is at 64.12%. Regardless of NVS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NVS's net profit margin of 8.41% compares favorably to the industry average.
  • Net operating cash flow has decreased to $4,157.00 million or 20.13% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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, NOVARTIS AG's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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