An Eye on Data – Celgene Corporation (NASDAQ: CELG)

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U.S. stocks closed lower on Friday as shareholders digested the most recent earnings reports and economic data.

The Dow Jones Industrial Average lost 122.91 points, or 0.50 percent, to 24,360.14. The S&P 500 erased 7.69 points, or 0.29 percent, to 2,656.30. The Nasdaq Composite Index was down 33.60 points, or 0.47 percent, to 7,106.65.

Citigroup, Wells Fargo and J.P. Morgan Chase all stated quarterly earnings and revenue that surpassed analyst expectations.

J.P. Morgan Chase stated earnings per share of 2.37 U.S. dollars, higher than analyst estimate of 2.28 dollars. Citigroup stated earnings per share of 1.68 dollars and its first-quarter revenue reached 18.9 billion dollars. Wells Fargo stated diluted earnings per share of 1.12 dollars, and revenue of 21.9 billion dollars.

Expectations for this earnings season are high. First-quarter earnings are predictable to increase 18.6 percent from the first quarter last year. Apart From the energy sector, the earnings growth is estimated to reach 16.9 percent, according to Thomson Reuters.

So far, the earnings season is off to a good start. Of the 26 companies in the S&P 500 that have stated earnings to date, 70 percent have stated earnings above analyst expectations. This is above the long-term average of 64 percent.

In addition, 76.7 percent of companies have stated revenue above analyst expectations. This is above the long-term average of 60 percent.

On the economic front, consumer sentiment slipped in early April, mostly reversing the gains recorded in the prior two months.

The University of Michigan’s mid-month report on consumer attitudes about the economy inched down to 97.8 in mid-April, lower than economist expectations. (Source: Xinhua)

Top Pick for Monday: Celgene Corporation (NASDAQ: CELG)

Celgene Corporation (NASDAQ: CELG) has grabbed attention from the analysts when it experienced a change of -0.38% in the last trading session to close at $89.40. A total of 4,135,109 shares exchanged hands during the intra-day trade contrast with its average trading volume of 7.98M shares, while its relative volume stands at 0.52. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it.  If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name.  When stocks are *very* In Play one can see a RVOL of 5 and above.  The higher the RVOL the more In Play the stock is.

Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.

In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.

Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.

Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.

Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Celgene Corporation (NASDAQ: CELG) stock is found to be 2.33% volatile for the week, while 2.98% volatility is recorded for the month.

Technical’s Snapshot:

The stock has a market cap of $68.71B and the number of outstanding shares has been calculated 768.53M. Based on a recent bid, its distance from 20 days simple moving average is 1.47%, and its distance from 50 days simple moving average is -2.02% while it has a distance of -21.81% from the 200 days simple moving average. The company’s distance from 52-week high price is -39.25% and the current price is 6.11% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 51.10 together with Average True Range (ATR 14) of 2.50.

Stock’s Valuation:

Past 5 years growth of CELG observed at 9.50%, and for the next five years the analysts that follow this company is expecting its growth at 19.41%. The stock’s price to sales ratio for trailing twelve months is 5.28 and price to book ratio for the most recent quarter is 9.99, whereas price to cash per share for the most recent quarter are 5.71. Its quick ratio for the most recent quarter is 4.80. Analysts mean recommendation for the stock is 2.20. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

Disclaimer: Any news, report, research, and analysis published on are only for information purposes. Alpha Beta Stock (ABS) makes sure to keep the information up to date and correct, but we didn’t suggest or recommend buying or selling of any financial instrument unless that information is subsequently confirmed on your own. Information in this release is fact checked and produced by competent editors of Alpha Beta Stock; however, human error can exist.

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Eddie A. New

Eddie A. New

Eddie A. New focuses on breaking news stories and ensuring we offer timely reporting on some of the most recent stories released through market wires about Healthcare Sector companies. He has formerly spent over 5 years as a trader in U.S. Stock Market and is now semi-stepped down. He works on a full time basis for specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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