NewLink Genetics (NLNK) Strong On High Relative Volume 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.

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

  • NLNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.3 million.
  • NLNK has traded 132,721 shares today.
  • NLNK is trading at 3.90 times the normal volume for the stock at this time of day.
  • NLNK is trading at a new high 8.02% 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 NLNK with the Ticky from Trade-Ideas. See the FREE profile for NLNK NOW at Trade-Ideas

More details on NLNK:

NewLink Genetics Corporation, a biopharmaceutical company, focuses on discovering, developing, and commercializing immunotherapeutic products to enhance treatment options for patients with cancer. NLNK has a PE ratio of 14.1. Currently there are 3 analysts that rate NewLink Genetics a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for NewLink Genetics has been 565,300 shares per day over the past 30 days. NewLink has a market cap of $1.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.36 and a short float of 23.6% with 9.57 days to cover. Shares are up 17.3% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates NewLink Genetics as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • NLNK's very impressive revenue growth greatly exceeded the industry average of 21.4%. Since the same quarter one year prior, revenues leaped by 57466.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NLNK's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 8.88, which clearly demonstrates the ability to cover short-term cash needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, NEWLINK GENETICS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for NEWLINK GENETICS CORP is currently very high, coming in at 88.22%. It has increased significantly from the same period last year. Along with this, the net profit margin of 74.95% significantly outperformed against the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Is Best Buy Sleeping With the Enemy With Amazon Partnership?

Is Best Buy Sleeping With the Enemy With Amazon Partnership?

Sprint, T-Mobile Might Have to Do More Than Make Promises to Get Deal Approved

Sprint, T-Mobile Might Have to Do More Than Make Promises to Get Deal Approved

Video: The S&P 500 Is Failing to Make New Highs

Video: The S&P 500 Is Failing to Make New Highs

Dow, S&P 500 and Nasdaq Finish Lower as Apple, P&G Slump

Dow, S&P 500 and Nasdaq Finish Lower as Apple, P&G Slump

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists