Trade-Ideas LLC identified Mead Johnson Nutrition ( MJN) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Mead Johnson Nutrition as such a stock due to the following factors:

  • MJN has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.68 mentions/day.
  • MJN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $182.0 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on MJN:

Mead Johnson Nutrition Company manufactures, distributes, and sells infant formulas, children's nutrition, and other nutritional products. The stock currently has a dividend yield of 2.2%. MJN has a PE ratio of 21. Currently there are 5 analysts that rate Mead Johnson Nutrition a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Mead Johnson Nutrition has been 2.3 million shares per day over the past 30 days. Mead Johnson Nutrition has a market cap of $15.2 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.42 and a short float of 3.7% with 2.95 days to cover. Shares are down 25.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Mead Johnson Nutrition as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The gross profit margin for MEAD JOHNSON NUTRITION CO is rather high; currently it is at 67.87%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.77% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 71.05% to $182.00 million when compared to the same quarter last year. In addition, MEAD JOHNSON NUTRITION CO has also vastly surpassed the industry average cash flow growth rate of 7.25%.
  • MEAD JOHNSON NUTRITION CO' earnings per share from the most recent quarter came in slightly below the year earlier 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, MEAD JOHNSON NUTRITION CO increased its bottom line by earning $3.54 versus $3.35 in the prior year. This year, the market expects an improvement in earnings ($3.65 versus $3.54).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.0%. Since the same quarter one year prior, revenues slightly dropped by 7.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food Products industry average. The net income has decreased by 5.0% when compared to the same quarter one year ago, dropping from $171.40 million to $162.90 million.

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