Trade-Ideas LLC identified

AMAG Pharmaceuticals

(

AMAG

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified AMAG Pharmaceuticals as such a stock due to the following factors:

  • AMAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $95.6 million.
  • AMAG has traded 1.1 million shares today.
  • AMAG is trading at 8.07 times the normal volume for the stock at this time of day.
  • AMAG is trading at a new low 3.12% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on AMAG:

AMAG Pharmaceuticals, Inc. operates as a specialty pharmaceutical company that focuses on maternal health, anemia, and cancer supportive care. AMAG has a PE ratio of 6. Currently there are 5 analysts that rate AMAG Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for AMAG Pharmaceuticals has been 883,800 shares per day over the past 30 days. AMAG has a market cap of $1.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.87 and a short float of 20.9% with 2.61 days to cover. Shares are up 11.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AMAG Pharmaceuticals as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • AMAG's very impressive revenue growth greatly exceeded the industry average of 8.8%. Since the same quarter one year prior, revenues leaped by 399.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 1271.42% and other important driving factors, this stock has surged by 117.50% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMAG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AMAG PHARMACEUTICALS 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, AMAG PHARMACEUTICALS INC turned its bottom line around by earning $4.33 versus -$0.45 in the prior year. This year, the market expects an improvement in earnings ($5.21 versus $4.33).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 2249.8% when compared to the same quarter one year prior, rising from -$1.55 million to $33.26 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Biotechnology industry and the overall market, AMAG PHARMACEUTICALS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

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