Perilous Reversal Watch: Endologix (ELGX)
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Endologix as such a stock due to the following factors:
- ELGX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.4 million.
- ELGX has traded 85,368 shares today.
- ELGX is down 3.4% today.
- ELGX was up 5.6% yesterday.
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More details on ELGX:
Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. Currently there are 5 analysts that rate Endologix a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Endologix has been 1.1 million shares per day over the past 30 days. Endologix has a market cap of $578.9 million and is part of the health care sector and health services industry. The stock has a beta of 1.47 and a short float of 15.4% with 3.34 days to cover. Shares are down 41% year-to-date as of the close of trading on Monday.
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Analysis:
rates Endologix as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ENDOLOGIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ELGX has underperformed the S&P 500 Index, declining 22.65% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- ENDOLOGIX INC has improved earnings per share by 23.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ENDOLOGIX INC reported poor results of -$0.49 versus -$0.25 in the prior year. For the next year, the market is expecting a contraction of 24.5% in earnings (-$0.61 versus -$0.49).
- ELGX's debt-to-equity ratio of 0.74 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.90 is very high and demonstrates very strong liquidity.
- The gross profit margin for ENDOLOGIX INC is currently very high, coming in at 74.98%. 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 -28.55% is in-line with the industry average.
- You can view the full Endologix Ratings Report.
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