Trade-Ideas LLC identified

Alexion Pharmaceuticals

(

ALXN

) 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 $296.0 million.
  • ALXN has a PE ratio of 164.
  • 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 0.9%.

'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 164. Currently there are 12 analysts that rate Alexion Pharmaceuticals a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Alexion Pharmaceuticals has been 1.6 million shares per day over the past 30 days. Alexion has a market cap of $41.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.28 and a short float of 5.1% with 4.30 days to cover. Shares are up 1.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alexion Pharmaceuticals as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • ALXN's revenue growth has slightly outpaced the industry average of 13.4%. Since the same quarter one year prior, revenues rose by 20.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.44, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.57, which clearly demonstrates the ability to cover short-term cash needs.
  • ALEXION PHARMACEUTICALS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, 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 ($4.97 versus $3.26).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 203.4% when compared to the same quarter one year ago, falling from $177.73 million to -$183.76 million.
  • 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 Biotechnology industry and the overall market, ALEXION PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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