Heavy Early Morning Activity On GlaxoSmithKline (GSK)

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

  • GSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $179.3 million.
  • GSK traded 1.1 million shares today in the pre-market hours as of 9:18 AM, representing 25.9% of its average daily volume.

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More details on GSK:

GlaxoSmithKline plc creates, discovers, develops, manufactures, and markets pharmaceutical products, including vaccines, over-the-counter medicines, and health-related consumer products worldwide. The stock currently has a dividend yield of 5.9%. GSK has a PE ratio of 15. Currently there are 2 analysts that rate GlaxoSmithKline a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for GlaxoSmithKline has been 3.7 million shares per day over the past 30 days. GlaxoSmithKline has a market cap of $103.6 billion and is part of the health care sector and drugs industry. Shares are up 0.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates GlaxoSmithKline as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, expanding profit margins and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • GSK's very impressive revenue growth greatly exceeded the industry average of 2.1%. Since the same quarter one year prior, revenues leaped by 127.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 Pharmaceuticals industry and the overall market, GLAXOSMITHKLINE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for GLAXOSMITHKLINE PLC is currently very high, coming in at 86.48%. It has increased significantly from the same period last year. Along with this, the net profit margin of 56.13% significantly outperformed against the industry average.
  • 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 978.4% when compared to the same quarter one year prior, rising from $1,113.89 million to $12,012.17 million.

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