Trade-Ideas: Shire (SHPG) Is Today's New Lifetime High Stock
- SHPG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.8 million.
- SHPG has traded 542,071 shares today.
- SHPG is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SHPG with the Ticky from Trade-Ideas. See the FREE profile for SHPG NOW at Trade-Ideas More details on SHPG: Shire plc, a specialty biopharmaceutical company, engages in the research and development, manufacture, sale, and distribution of pharmaceutical products. It operates in three segments: Specialty Pharmaceuticals (SP), Human Genetic Therapies (HGT), and Regenerative Medicine (RM). The stock currently has a dividend yield of 0.5%. SHPG has a PE ratio of 37.6. Currently there are 9 analysts that rate Shire a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Shire has been 305,400 shares per day over the past 30 days. Shire has a market cap of $21.5 billion and is part of the health care sector and drugs industry. Shares are up 24.1% year to date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Shire 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, solid stock price performance, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- SHPG's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SHPG's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.90 is somewhat weak and could be cause for future problems.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- SHIRE PLC has improved earnings per share by 9.7% in the most recent quarter compared to the same quarter a year ago. 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, SHIRE PLC reported lower earnings of $3.89 versus $4.54 in the prior year. This year, the market expects an improvement in earnings ($6.86 versus $3.89).
- The gross profit margin for SHIRE PLC is currently very high, coming in at 87.00%. Regardless of SHPG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.25% trails the industry average.
- You can view the full Shire Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.