Allergan (AGN) Off To A Strong Start In Pre-Market Activity - TheStreet

Trade-Ideas LLC identified

Allergan

(

AGN

) 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 $1.8 billion.
  • AGN traded 176,225 shares today in the pre-market hours as of 7:25 AM.
  • AGN is up 11.2% today from yesterday's close.

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More details on AGN:

Allergan plc develops, manufactures, and distributes generic, branded, biosimilar, and over-the-counter (OTC) pharmaceutical products. It operates in three segments: North American Brands, North American Generics and International, and Anda Distribution. The stock currently has a dividend yield of 0.1%. Currently there are 15 analysts that rate Allergan a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Allergan has been 3.7 million shares per day over the past 30 days. Allergan has a market cap of $106.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.15 and a short float of 1.7% with 1.17 days to cover. Shares are up 11% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Allergan as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • AGN's very impressive revenue growth greatly exceeded the industry average of 6.2%. Since the same quarter one year prior, revenues leaped by 115.8%. 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.
  • Net operating cash flow has significantly increased by 157.87% to $1,401.30 million when compared to the same quarter last year. In addition, ALLERGAN PLC has also vastly surpassed the industry average cash flow growth rate of -45.83%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 599.2% when compared to the same quarter one year ago, falling from $48.70 million to -$243.10 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.

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