Trade-Ideas LLC identified

Seattle Genetics

(

SGEN

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Seattle Genetics as such a stock due to the following factors:

  • SGEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.7 million.
  • SGEN has traded 127,429 shares today.
  • SGEN traded in a range 217.3% of the normal price range with a price range of $2.85.
  • SGEN traded above its daily resistance level (quality: 209 days, meaning that the stock is crossing a resistance level set by the last 209 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SGEN with the Ticky from Trade-Ideas. See the FREE profile for SGEN NOW at Trade-Ideas

More details on SGEN:

Seattle Genetics, Inc., a biotechnology company, develops and commercializes targeted therapies for the treatment of cancer worldwide. Currently there are 6 analysts that rate Seattle Genetics a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Seattle Genetics has been 844,700 shares per day over the past 30 days. Seattle has a market cap of $6.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.97 and a short float of 23.7% with 22.33 days to cover. Shares are down 2.5% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Seattle Genetics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • SGEN has underperformed the S&P 500 Index, declining 13.17% 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.
  • SEATTLE GENETICS INC has improved earnings per share by 11.8% 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, SEATTLE GENETICS INC reported poor results of -$0.94 versus -$0.62 in the prior year. For the next year, the market is expecting a contraction of 18.1% in earnings (-$1.11 versus -$0.94).
  • 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. Compared to other companies in the Biotechnology industry and the overall market, SEATTLE GENETICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 5.6% when compared to the same quarter one year prior, going from -$21.69 million to -$20.48 million.
  • The gross profit margin for SEATTLE GENETICS INC is currently very high, coming in at 95.21%. 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 -18.42% is in-line with the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.