Quintiles Transnational Holdings (Q) Is Today's Pre-Market Mover With Heavy 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.

Trade-Ideas LLC identified Quintiles Transnational Holdings ( Q) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Quintiles Transnational Holdings as such a stock due to the following factors:

  • Q has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.8 million.
  • Q traded 162,421 shares today in the pre-market hours as of 8:52 AM, representing 18.3% of its average daily volume.

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More details on Q:

Quintiles Transnational Holdings Inc., through its subsidiary, Quintiles Transnational Corp., provides biopharmaceutical development services and commercial outsourcing services in the Americas, Europe, Africa, and the Asia-Pacific. Q has a PE ratio of 24. Currently there are 12 analysts that rate Quintiles Transnational Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Quintiles Transnational Holdings has been 602,800 shares per day over the past 30 days. Quintiles Transnational has a market cap of $8.0 billion and is part of the health care sector and health services industry. Shares are up 9.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Quintiles Transnational Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • The gross profit margin for QUINTILES TRANSNATIONAL HLDG is currently lower than what is desirable, coming in at 29.57%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.41% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$64.33 million or 126.22% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Life Sciences Tools & Services industry average. The net income has decreased by 4.2% when compared to the same quarter one year ago, dropping from $90.18 million to $86.40 million.
  • QUINTILES TRANSNATIONAL HLDG reported flat earnings per share in the most recent quarter. 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, QUINTILES TRANSNATIONAL HLDG increased its bottom line by earning $2.72 versus $1.35 in the prior year. This year, the market expects an improvement in earnings ($3.07 versus $2.72).
  • Compared to its closing price of one year ago, Q's share price has jumped by 36.97%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in Q do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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