Trade-Ideas LLC identified

Endo International

(

ENDP

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

  • ENDP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $221.1 million.
  • ENDP has traded 948,703 shares today.
  • ENDP is trading at 2.61 times the normal volume for the stock at this time of day.
  • ENDP is trading at a new low 6.01% 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 ENDP:

TST Recommends

Endo International plc, a specialty healthcare company, focuses on branded and generic pharmaceuticals and devices worldwide. It operates through four segments: U.S. Branded Pharmaceuticals, U.S. Generic Pharmaceuticals, Devices, and International Pharmaceuticals. The U.S. Currently there are 7 analysts that rate Endo International a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Endo International has been 3.9 million shares per day over the past 30 days. Endo International has a market cap of $13.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.92 and a short float of 7.2% with 3.10 days to cover. Shares are down 1.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Endo International as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 14.0%. 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.
  • The gross profit margin for ENDO INTERNATIONAL PLC is rather high; currently it is at 64.23%. 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 -140.86% is in-line with the industry average.
  • ENDO INTERNATIONAL PLC 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 company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENDO INTERNATIONAL PLC continued to lose money by earning -$0.18 versus -$4.67 in the prior year. This year, the market expects an improvement in earnings ($4.57 versus -$0.18).
  • 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 316.7% when compared to the same quarter one year ago, falling from -$252.08 million to -$1,050.44 million.
  • The debt-to-equity ratio of 1.40 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, ENDP maintains a poor quick ratio of 0.82, which illustrates the inability to avoid short-term cash problems.

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