Novartis (NVS) Reaches New Lifetime High Today

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 Novartis ( NVS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Novartis as such a stock due to the following factors:

  • NVS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $109.8 million.
  • NVS has traded 10,748 shares today.
  • NVS is trading at a new lifetime high.

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More details on NVS:

Its Pharmaceuticals division offers patented prescription medicines in various therapeutic areas, including oncology; primary care and established medicines; specialty care, such as ophthalmology, neuroscience, integrated hospital care, and critical care; and cardiovascular and metabolism. The stock currently has a dividend yield of 2.5%. NVS has a PE ratio of 25.6. Currently there are 4 analysts that rate Novartis a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Novartis has been 1.4 million shares per day over the past 30 days. Novartis has a market cap of $229.2 billion and is part of the health care sector and drugs industry. Shares are up 18.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Novartis 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, compelling growth in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 2.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • 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 44.4% when compared to the same quarter one year prior, rising from $2,232.00 million to $3,223.00 million.
  • NOVARTIS AG has improved earnings per share by 45.3% 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, NOVARTIS AG reported lower earnings of $3.73 versus $3.80 in the prior year. This year, the market expects an improvement in earnings ($5.25 versus $3.73).

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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