GlaxoSmithKline (GSK): 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 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 $141.8 million.
  • GSK traded 299,164 shares today in the pre-market hours as of 9:18 AM, representing 11.7% of its average daily volume.

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More details on GSK:

GlaxoSmithKline plc creates, discovers, develops, manufactures, and markets pharmaceutical products, such as vaccines, over-the-counter medicines, and health-related consumer products worldwide. The stock currently has a dividend yield of 4.5%. GSK has a PE ratio of 18.8. Currently there is 1 analyst that rates GlaxoSmithKline a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for GlaxoSmithKline has been 2.4 million shares per day over the past 30 days. GlaxoSmithKline has a market cap of $127.5 billion and is part of the health care sector and drugs industry. Shares are down 1.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates GlaxoSmithKline as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 29.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.
  • 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 194.2% when compared to the same quarter one year prior, rising from $1,426.48 million to $4,196.37 million.
  • Net operating cash flow has increased to $3,823.62 million or 21.59% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -16.34%.
  • 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.

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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