Trade-Ideas: TherapeuticsMD (TXMD) Is Today's Strong On High Relative Volume Stock

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 TherapeuticsMD ( TXMD) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified TherapeuticsMD as such a stock due to the following factors:

  • TXMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.6 million.
  • TXMD has traded 173,111 shares today.
  • TXMD is trading at 3.07 times the normal volume for the stock at this time of day.
  • TXMD is trading at a new high 4.11% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TXMD with the Ticky from Trade-Ideas. See the FREE profile for TXMD NOW at Trade-Ideas

More details on TXMD:

TherapeuticsMD, Inc., a U.S. women's healthcare product company, manufactures and distributes branded and generic prescription prenatal vitamins, as well as over-the-counter, vitamins, and cosmetics. Currently there are 5 analysts that rate TherapeuticsMD a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for TherapeuticsMD has been 2.1 million shares per day over the past 30 days. TherapeuticsMD has a market cap of $905.2 million and is part of the health care sector and drugs industry. The stock has a beta of -1.57 and a short float of 19.2% with 9.62 days to cover. Shares are up 12.1% year-to-date as of the close of trading on Thursday.

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 TherapeuticsMD as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 81.9% when compared to the same quarter one year ago, falling from -$5.99 million to -$10.90 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, THERAPEUTICSMD INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$10.07 million or 40.35% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • THERAPEUTICSMD INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, THERAPEUTICSMD INC continued to lose money by earning -$0.22 versus -$0.40 in the prior year. For the next year, the market is expecting a contraction of 29.5% in earnings (-$0.29 versus -$0.22).
  • The gross profit margin for THERAPEUTICSMD INC is currently very high, coming in at 76.19%. Regardless of TXMD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TXMD's net profit margin of -290.56% significantly underperformed when compared to the industry average.

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

null

More from Markets

Baidu Stock Plummets After COO Qi Lu Resignation

Baidu Stock Plummets After COO Qi Lu Resignation

Wondering What Blockchain Technology Really Is? This Expert Explains It All

Wondering What Blockchain Technology Really Is? This Expert Explains It All

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec

Gold Prices Look 'Rich' at Current Levels - Here's What Could Change That

Gold Prices Look 'Rich' at Current Levels - Here's What Could Change That