Bristol-Myers Squibb Company (BMY) Showing Signs Of Being A Momo Momentum 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.

Trade-Ideas LLC identified Bristol-Myers Squibb Company ( BMY) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Bristol-Myers Squibb Company as such a stock due to the following factors:

  • BMY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $394.4 million.
  • BMY has a PE ratio of 47.9.
  • BMY is currently in the upper 30% of its 1-year range.
  • BMY is in the upper 25% of its 20-day range.
  • BMY is in the upper 35% of its 5-day range.
  • BMY is currently trading above yesterday's high.
  • BMY has experienced a gap between today's open and yesterday's close of 0.8%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on BMY:

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. The stock currently has a dividend yield of 2.3%. BMY has a PE ratio of 47.9. Currently there are 9 analysts that rate Bristol-Myers Squibb Company a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Bristol-Myers Squibb Company has been 6.2 million shares per day over the past 30 days. Bristol-Myers Squibb has a market cap of $107.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.86 and a short float of 1.3% with 3.40 days to cover. Shares are up 9.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bristol-Myers Squibb Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.1%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.42, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for BRISTOL-MYERS SQUIBB CO is currently very high, coming in at 84.46%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.34% is above that of the industry average.
  • Net operating cash flow has slightly increased to $626.00 million or 1.45% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -44.88%.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Pharmaceuticals industry average. The net income increased by 26.6% when compared to the same quarter one year prior, rising from $937.00 million to $1,186.00 million.

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