Sigma-Aldrich (SIAL) Showing Signs Of Being Strong And Under The Radar

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

  • SIAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $94.1 million.
  • SIAL has traded 99.1940000000000026147972675971686840057373046875 options contracts today.
  • SIAL is making at least a new 3-day high.
  • SIAL has a PE ratio of 34.
  • SIAL is mentioned 1.06 times per day on StockTwits.
  • SIAL has not yet been mentioned on StockTwits today.
  • SIAL is currently in the upper 20% of its 1-year range.
  • SIAL is in the upper 35% of its 20-day range.
  • SIAL is in the upper 45% of its 5-day range.
  • SIAL 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 SIAL with the Ticky from Trade-Ideas. See the FREE profile for SIAL NOW at Trade-Ideas

More details on SIAL:

Sigma-Aldrich Corporation, a life science and high technology company, develops, manufactures, purchases, and distributes various chemicals, biochemicals, and equipment products worldwide. The stock currently has a dividend yield of 0.7%. SIAL has a PE ratio of 34. Currently there are no analysts that rate Sigma-Aldrich a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Sigma-Aldrich has been 1.3 million shares per day over the past 30 days. Sigma-Aldrich has a market cap of $16.7 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.09 and a short float of 2.5% with 3.94 days to cover. Shares are up 1.6% 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 Sigma-Aldrich 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, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 19.4%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SIAL's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.28, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for SIGMA-ALDRICH CORP is rather high; currently it is at 55.76%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.21% is above that of the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Chemicals industry average. The net income increased by 5.5% when compared to the same quarter one year prior, going from $108.00 million to $114.00 million.
  • SIGMA-ALDRICH CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SIGMA-ALDRICH CORP increased its bottom line by earning $4.17 versus $4.05 in the prior year. This year, the market expects an improvement in earnings ($4.30 versus $4.17).

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

Russia Risk: What You Need to Know About the New 'Reset'

Russia Risk: What You Need to Know About the New 'Reset'

Stocks Show Signs of Life During Fed Chair Powell's Testimony on Capitol Hill

Stocks Show Signs of Life During Fed Chair Powell's Testimony on Capitol Hill

UnitedHealth CEO: We See More Tailwinds Than Headwinds

UnitedHealth CEO: We See More Tailwinds Than Headwinds

Jim Cramer: Bank of America Expects 4% Economic Growth in Q2

Jim Cramer: Bank of America Expects 4% Economic Growth in Q2

Jim Cramer Reacts to Lloyd Blankfein's Retirement at Goldman Sachs

Jim Cramer Reacts to Lloyd Blankfein's Retirement at Goldman Sachs