Alexion Pharmaceuticals (ALXN) On Momo Momentum Watch Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Alexion Pharmaceuticals as such a stock due to the following factors:
- ALXN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $243.2 million.
- ALXN has a PE ratio of 56.5.
- ALXN is currently in the upper 30% of its 1-year range.
- ALXN is in the upper 25% of its 20-day range.
- ALXN is in the upper 35% of its 5-day range.
- ALXN is currently trading above yesterday's high.
- ALXN has experienced a gap between today's open and yesterday's close of 1%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on ALXN:
Alexion Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes life-transforming therapeutic products. ALXN has a PE ratio of 56.5. Currently there are 14 analysts that rate Alexion Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Alexion Pharmaceuticals has been 1.2 million shares per day over the past 30 days. Alexion has a market cap of $37.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.21 and a short float of 2.1% with 2.50 days to cover. Shares are up 1.7% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Alexion Pharmaceuticals as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- ALEXION PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ALEXION PHARMACEUTICALS INC increased its bottom line by earning $3.26 versus $1.26 in the prior year. This year, the market expects an improvement in earnings ($5.80 versus $3.26).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 907.4% when compared to the same quarter one year prior, rising from -$18.99 million to $153.33 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 36.4%. Since the same quarter one year prior, revenues rose by 35.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ALXN's debt-to-equity ratio is very low at 0.05 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 3.95, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for ALEXION PHARMACEUTICALS INC is currently very high, coming in at 94.70%. 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 25.57% trails the industry average.
- You can view the full Alexion Pharmaceuticals Ratings Report.
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