Trade-Ideas LLC identified

Eagle Pharmaceuticals

(

EGRX

) 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 Eagle Pharmaceuticals as such a stock due to the following factors:

  • EGRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.4 million.
  • EGRX has traded 1.1 million shares today.
  • EGRX traded in a range 637.2% of the normal price range with a price range of $17.85.
  • EGRX traded above its daily resistance level (quality: 85 days, meaning that the stock is crossing a resistance level set by the last 85 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.

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More details on EGRX:

Eagle Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing injectable products primarily in the critical care and oncology areas in the United States. Currently there are 4 analysts that rate Eagle Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Eagle Pharmaceuticals has been 417,300 shares per day over the past 30 days. Eagle has a market cap of $654.9 million and is part of the health care sector and drugs industry. Shares are down 53.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Eagle Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:

  • 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 104.5% when compared to the same quarter one year ago, falling from $19.70 million to -$0.90 million.
  • Net operating cash flow has significantly decreased to $3.11 million or 87.97% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for EAGLE PHARMACEUTICALS INC is rather high; currently it is at 51.52%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, EGRX's net profit margin of -3.02% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 18.1%. Since the same quarter one year prior, revenues fell by 18.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • EAGLE 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 year, the market expects an improvement in earnings ($4.33 versus $0.20).

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