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 Hospira ( HSP) 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 Hospira as such a stock due to the following factors:
- HSP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.2 million.
- HSP has traded 1.3 million shares today.
- HSP traded in a range 208.4% of the normal price range with a price range of $1.71.
- HSP traded below its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 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 HSP with the Ticky from Trade-Ideas. See the FREE profile for HSP NOW at Trade-Ideas More details on HSP: Hospira, Inc. provides injectable pharmaceutical drugs and infusion technologies to develop, manufacture, distribute, and market products worldwide. The company operates through Americas, EMEA, and APAC segments. Currently there are no analysts that rate Hospira a buy, 1 analyst rates it a sell, and 7 rate it a hold. The average volume for Hospira has been 1.2 million shares per day over the past 30 days. Hospira has a market cap of $7.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.87 and a short float of 3.2% with 4.12 days to cover. Shares are up 5.5% 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 Hospira as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Highlights from the ratings report include:
- Powered by its strong earnings growth of 566.66% and other important driving factors, this stock has surged by 46.36% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although HSP had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 532.1% when compared to the same quarter one year prior, rising from $5.30 million to $33.50 million.
- HOSPIRA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HOSPIRA INC swung to a loss, reporting -$0.05 versus $0.26 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus -$0.05).
- HSP, with its decline in revenue, slightly underperformed the industry average of 1.4%. Since the same quarter one year prior, revenues slightly dropped by 1.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, HOSPIRA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Hospira 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.