Medidata Solutions Stock Surging Large Players Volume On Bullish Hammer

Medidata Solutions stock has a beautiful rising large players volume plot while the stock does a double bottom test. The speed up of FDA approvals in order to lower drug prices should benefit this company.

Medidata Solutions stock has surging large players volume on a bullish hammer candlestick.

On Friday, December 1, 2017, Wells Fargo & Company upgraded Medidata Solutions from a Market Perform rating to an Outperform rating. Wells Fargo set a price target of $80 on the stock.

Medidata Solutions stock has no Sell ratings, 2 Hold ratings, and 12 Buy ratings. The average target price is $81.71 which represents 22.62% upside from the current price.

Medidata Solutions reported quarterly earnings on October 26, 2017. The company reported EPS of $0.33 versus the $0.31 estimate. Revenue missed coming in at $140.08 million versus the $141.27 million estimate. Medidata Solutions’s quarterly revenue was up an impressive 16.7% year-over-year.

A catalyst for this stock is the recent push to speed up the FDA approval process in order to lower drug prices. The cheaper and faster the FDA approval process is, the more clients Medidata Solutions is likely to get.

Medidata Solutions Inc. is a provider of cloud-based solutions for life sciences. The Company provides cloud-based solutions for clinical research in life sciences, offering platform technology that focuses on the clinical development. You can read more about the company on their website.

Medidata Solutions Stock

Medidata Solutions stock a positive divergence between large players volume and price.

That’s a beautiful looking positive divergence between large players volume and price. We have a double bottom test and then a bullish hammer candlestick forming on December 1, 2017. The Twiggs Money Flow looks ready to break positive.

Medidata Solutions Inc. Review
2.8

Summary

Profitability

MDSO has a Return On Assets of 4.54%. This is better than the industry average of -1.00%. MDSO has a Profit Margin of 7.84%. This is better than the industry average of -1.83%. The Piotroski-F score of MDSO is 8. This is a very strong score and indicates great health and profitability for MDSO. MDSO has a Return On Equity of 8.86%. This is below the industry average of 12.44%.

Valuation

With a price book ratio of 8.42, MDSO is valued correctly. With a Price/Earnings Ratio of 95.87, MDSO can be considered very expensive at the moment. Compared to an average industry Price/Earning Ratio of 41.15, MDSO is valued more expensive than its industry peers. On top of this 84% of the companies listed in the same industry are cheaper than MDSO! The Forward Price/Earnings Ratio of 73.21 indicates a quite expensive current valuation of MDSO. The high PEG Ratio, which compensates the Price/Earnings for growth, indicates MDSO does not grow enough to justify the current Price/Earnings ratio. When comparing the price book ratio of MDSO to the average industry price book ratio of 4.70, MDSO is valued more expensive than its industry peers. Compared to an average industry Enterprise Value to EBITDA ratio of 22.21, MDSO is valued more expensive than its industry peers.

Growth

MDSO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.39%, which is quite impressive. MDSO shows quite a strong growth in Earnings Per Share. Measured over the last 5 years, the EPS has been growing by 14.70% yearly. Based on estimates for the next 2 years, MDSO will show a very strong growth in Earnings Per Share. The EPS will grow by 34.80% on average per year. MDSO shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.79%. Measured over the past 5 years, MDSO shows a quite strong growth in Revenue. The Revenue has been growing by 19.35% on average per year. When comparing the growth rate of the last years to the growth rate of the upcoming 2 years, we see that the growth is decreasing.

Health

MDSO has an Altman-Z score of 6.36. This indicates that MDSO is financially healthy and little risk of bankruptcy at the moment. MDSO is in better financial health than average in its industry. Its Altman-Z score is much better than the industry average of 3.89. The Piotroski-F score of MDSO is 8. This is a very strong score and indicates great health and profitability for MDSO. A Current Ratio of 1.29 indicates that MDSO should not have too much problems paying its short term obligations. A Quick Ratio of 1.29 indicates that MDSO should not have too much problems paying its short term obligations. The Debt to Equity ratio of MDSO is in line with the industry averages. When comparing the Current Ratio of MDSO to the average industry Current Ratio of 1.63, MDSO is less able to pay its short term obligations than its industry peers. Compared to an average industry Quick Ratio of 1.63, MDSO is worse placed to pay its short term obligations than its industry peers.

Fundamental analysis provided by Chartmill. Get instant fundamental analysis on your favorite stocks here.

Sending
User Rating 0 (0 votes)
Comments Rating 0 (0 reviews)
Follow me

Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
Follow me

Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

Leave a Reply

Sending