Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Valeant Pharmaceuticals International as such a stock due to the following factors:
- VRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $905.4 million.
- VRX has traded 6.3 million shares today.
- VRX is trading at 2.29 times the normal volume for the stock at this time of day.
- VRX is trading at a new high 6.01% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on VRX:
Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide. Currently there are 5 analysts that rate Valeant Pharmaceuticals International a buy, 3 analysts rate it a sell, and 8 rate it a hold.
The average volume for Valeant Pharmaceuticals International has been 34.7 million shares per day over the past 30 days. Valeant Pharmaceuticals International has a market cap of $9.3 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 6.5% with 0.76 days to cover. Shares are down 73.5% year-to-date as of the close of trading on Thursday.
rates Valeant Pharmaceuticals International as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 172.1% when compared to the same quarter one year ago, falling from $534.90 million to -$385.90 million.
- The debt-to-equity ratio is very high at 5.27 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, VRX has a quick ratio of 0.62, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, VALEANT PHARMACEUTICALS INTL's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $562.40 million or 31.05% 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.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 88.47%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 171.79% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full Valeant Pharmaceuticals International Ratings Report.