Allergan (AGN) Leading In Pre-Market Activity
Trade-Ideas LLC identified
(
) as a pre-market leader 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 $888.9 million.
- AGN traded 64,065 shares today in the pre-market hours as of 9:29 AM.
- AGN is up 3.7% today from yesterday's close.
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More details on AGN:
Allergan plc, a specialty pharmaceutical company, develops, manufactures, markets, and distributes medical aesthetics, biosimilar, and over-the-counter pharmaceutical products worldwide. It operates through US Brands, US Medical Aesthetics, International Brands, and Anda Distribution segments. AGN has a PE ratio of 21. Currently there are 13 analysts that rate Allergan a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Allergan has been 4.8 million shares per day over the past 30 days. Allergan has a market cap of $84.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.09 and a short float of 1.5% with 1.37 days to cover. Shares are down 32.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Allergan as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.
Highlights from the ratings report include:
- AGN's very impressive revenue growth greatly exceeded the industry average of 5.8%. Since the same quarter one year prior, revenues leaped by 73.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ALLERGAN PLC has improved earnings per share by 42.7% 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ALLERGAN PLC continued to lose money by earning -$8.38 versus -$9.61 in the prior year. This year, the market expects an improvement in earnings ($14.09 versus -$8.38).
- Compared to other companies in the Pharmaceuticals industry and the overall market, ALLERGAN PLC's return on equity significantly trails that of both the industry average and the S&P 500.
- AGN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.40%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Despite currently having a low debt-to-equity ratio of 0.56, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.42 is very low and demonstrates very weak liquidity.
- You can view the full Allergan Ratings Report.
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