New Lifetime High Reached By Allergan (AGN)
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 new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Allergan as such a stock due to the following factors:
- AGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $540.2 million.
- AGN has traded 7,175 shares today.
- AGN is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AGN with the Ticky from Trade-Ideas. See the FREE profile for AGN NOW at Trade-Ideas
More details on AGN:
Allergan, Inc. discovers, develops, and commercializes pharmaceuticals, biologics, medical devices, and over-the-counter products in the Unites States and internationally. It operates through two segments, Specialty Pharmaceuticals and Medical Devices. The stock currently has a dividend yield of 0.1%. AGN has a PE ratio of 46.8. Currently there are 4 analysts that rate Allergan a buy, no analysts rate it a sell, and 11 rate it a hold.
The average volume for Allergan has been 2.2 million shares per day over the past 30 days. Allergan has a market cap of $70.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.99 and a short float of 0.9% with 1.14 days to cover. Shares are up 11.6% year-to-date as of the close of trading on Thursday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Allergan as a
. 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, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 13.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- AGN's debt-to-equity ratio is very low at 0.28 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 3.78, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, ALLERGAN INC's return on equity exceeds that of both the industry average and the S&P 500.
- ALLERGAN 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, ALLERGAN INC increased its bottom line by earning $5.02 versus $4.20 in the prior year. This year, the market expects an improvement in earnings ($8.76 versus $5.02).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 71.7% when compared to the same quarter one year prior, rising from $312.90 million to $537.20 million.
- You can view the full Allergan Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
null