Strong And Under The Radar: WuXi PharmaTech (WX)

Trade-Ideas LLC identified WuXi PharmaTech ( WX) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified WuXi PharmaTech as such a stock due to the following factors:

  • WX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.2 million.
  • WX has traded 1047.84999999999990905052982270717620849609375 options contracts today.
  • WX is making at least a new 3-day high.
  • WX has a PE ratio of 24.
  • WX is mentioned 0.71 times per day on StockTwits.
  • WX has not yet been mentioned on StockTwits today.
  • WX is currently in the upper 20% of its 1-year range.
  • WX is in the upper 35% of its 20-day range.
  • WX is in the upper 45% of its 5-day range.
  • WX is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in WX with the Ticky from Trade-Ideas. See the FREE profile for WX NOW at Trade-Ideas

More details on WX:

Wuxi PharmaTech (Cayman) Inc. operates as a pharmaceutical, biotechnology, and medical device research and development services company in China and the United States. It operates through two segments, Laboratory Services and Manufacturing Services. WX has a PE ratio of 24. Currently there are 3 analysts that rate WuXi PharmaTech a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for WuXi PharmaTech has been 610,400 shares per day over the past 30 days. WuXi PharmaTech has a market cap of $3.1 billion and is part of the health care sector and health services industry. Shares are up 30.9% 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 WuXi PharmaTech 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, reasonable valuation levels and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues rose by 18.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, WX has a quick ratio of 2.16, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to its closing price of one year ago, WX's share price has jumped by 26.82%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • WUXI PHARMATECH (CAYMAN)-ADR's earnings per share declined by 36.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, WUXI PHARMATECH (CAYMAN)-ADR reported lower earnings of $1.56 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $1.56).

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

Tuesday Turnaround: Google Gets Grilled

Tuesday Turnaround: Google Gets Grilled

Nvidia Shares Fall as SoftBank Reportedly Plans to Sell Its Stake

Nvidia Shares Fall as SoftBank Reportedly Plans to Sell Its Stake

Stocks End Mixed as China Trade Progress Offsets D.C. Dysfunction

Stocks End Mixed as China Trade Progress Offsets D.C. Dysfunction

Market Madness: This Market Is for Stock Pickers

Market Madness: This Market Is for Stock Pickers

Jim Cramer: The Operative Term for This Tape Is Treacherous

Jim Cramer: The Operative Term for This Tape Is Treacherous