Trade-Ideas LLC identified Bristol-Myers Squibb Company ( BMY) as a “water-logged and getting wetter” (weak stocks crossing below support with today’s range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Bristol-Myers Squibb Company as such a stock due to the following factors:
- BMY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $363.2 million.
- BMY has traded 5.1 million shares today.
- BMY traded in a range 218.1% of the normal price range with a price range of $2.39.
- BMY traded below its daily resistance level (quality: 14 days, meaning that the stock is crossing a resistance level set by the last 14 calendar days. The resistance price is defined by the Price – $0.01 at the time of the signal).
Stocks matching the ‘Water-Logged and Getting Wetter’ criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, “support” while at the same time the range of the stock’s movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
More details on BMY:
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. The stock currently has a dividend yield of 2.2%. BMY has a PE ratio of 51. Currently there are 9 analysts that rate Bristol-Myers Squibb Company a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Bristol-Myers Squibb Company has been 6.3 million shares per day over the past 30 days. Bristol-Myers Squibb has a market cap of $114.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.86 and a short float of 1.2% with 4.26 days to cover. Shares are up 17.1% year-to-date as of the close of trading on Thursday.
TheStreet Quant Ratings rates Bristol-Myers Squibb Company 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, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- BMY’s revenue growth has slightly outpaced the industry average of 1.9%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company’s revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.42, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has slightly increased to $626.00 million or 1.45% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -21.25%.
- The gross profit margin for BRISTOL-MYERS SQUIBB CO is currently very high, coming in at 84.46%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 29.34% trails the industry average.
- Powered by its strong earnings growth of 26.78% and other important driving factors, this stock has surged by 41.42% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock’s sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.