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 GlaxoSmithKline ( GSK) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified GlaxoSmithKline as such a stock due to the following factors:
- GSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $96.2 million.
- GSK traded 194,200 shares today in the pre-market hours as of 8:31 AM, representing 10.3% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in GSK with the Ticky from Trade-Ideas. See the FREE profile for GSK NOW at Trade-Ideas More details on GSK: GlaxoSmithKline plc, together with its subsidiaries, discovers, develops, manufactures, and markets pharmaceutical products, over-the-counter medicines, and health-related consumer products worldwide. The stock currently has a dividend yield of 4.6%. GSK has a PE ratio of 15.4. Currently there are 2 analysts that rate GlaxoSmithKline a buy, 1 analyst rates it a sell, and 5 rate it a hold. The average volume for GlaxoSmithKline has been 2.1 million shares per day over the past 30 days. GlaxoSmithKline has a market cap of $125.1 billion and is part of the health care sector and drugs industry. Shares are up 17.7% year to date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates GlaxoSmithKline as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The gross profit margin for GLAXOSMITHKLINE PLC is currently very high, coming in at 71.13%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.65% trails the industry average.
- 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- GLAXOSMITHKLINE PLC's earnings per share declined by 13.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, GLAXOSMITHKLINE PLC reported lower earnings of $2.94 versus $3.21 in the prior year. This year, the market expects an improvement in earnings ($3.65 versus $2.94).
- GSK, with its decline in revenue, slightly underperformed the industry average of 2.2%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- 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. Compared to other companies in the Pharmaceuticals industry and the overall market, GLAXOSMITHKLINE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full GlaxoSmithKline Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.