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 Gilead ( GILD) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Gilead as such a stock due to the following factors:
- GILD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $783.7 million.
- GILD has traded 6.9 million shares today.
- GILD traded in a range 202.9% of the normal price range with a price range of $3.03.
- GILD traded below its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower. EXCLUSIVE OFFER: Get the inside scoop on opportunities in GILD with the Ticky from Trade-Ideas. See the FREE profile for GILD NOW at Trade-Ideas More details on GILD: Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes human therapeutics for the treatment of life threatening diseases in North America, Europe, and Asia. GILD has a PE ratio of 40.6. Currently there are 16 analysts that rate Gilead a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Gilead has been 8.9 million shares per day over the past 30 days. Gilead has a market cap of $113.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.89 and a short float of 5.2% with 6.46 days to cover. Shares are up 104.7% year-to-date as of the close of trading on Monday. 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 Gilead as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and good cash flow from operations. 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:
- GILD's revenue growth has slightly outpaced the industry average of 11.2%. Since the same quarter one year prior, revenues rose by 14.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 96.37% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GILD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for GILEAD SCIENCES INC is currently very high, coming in at 77.17%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.33% is above that of the industry average.
- Net operating cash flow has slightly increased to $753.10 million or 1.03% when compared to the same quarter last year. Despite an increase in cash flow, GILEAD SCIENCES INC's average is still marginally south of the industry average growth rate of 1.39%.
- You can view the full Gilead 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.