Royal Philips (PHG): Heavy Pre-Market Activity

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 Royal Philips ( PHG) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Royal Philips as such a stock due to the following factors:

  • PHG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.8 million.
  • PHG traded 91,083 shares today in the pre-market hours as of 9:13 AM, representing 14.4% of its average daily volume.

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More details on PHG:

Koninklijke Philips N.V. engages in the healthcare, lighting, and consumer lifestyle businesses worldwide. The stock currently has a dividend yield of 2.2%. PHG has a PE ratio of 102.5. Currently there is 1 analyst that rates Royal Philips a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Royal Philips has been 470,800 shares per day over the past 30 days. Royal Philips has a market cap of $34.7 billion and is part of the consumer goods sector and consumer durables industry. Shares are up 2.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Royal Philips as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • PHG's revenue growth has slightly outpaced the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 6.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • KONINKLIJKE PHILIPS NV reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, KONINKLIJKE PHILIPS NV turned its bottom line around by earning $0.03 versus -$1.05 in the prior year. This year, the market expects an improvement in earnings ($1.77 versus $0.03).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Industrial Conglomerates industry. The net income increased by 192.6% when compared to the same quarter one year prior, rising from $139.04 million to $406.78 million.
  • 47.73% is the gross profit margin for KONINKLIJKE PHILIPS NV which we consider to be strong. 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 4.97% trails the industry average.
  • Powered by its strong earnings growth of 207.14% and other important driving factors, this stock has surged by 37.94% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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