Perilous Reversal Watch: Agios Pharmaceuticals (AGIO)
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Agios Pharmaceuticals as such a stock due to the following factors:
- AGIO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.6 million.
- AGIO has traded 153,572 shares today.
- AGIO is down 3.4% today.
- AGIO was up 9.4% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AGIO with the Ticky from Trade-Ideas. See the FREE profile for AGIO NOW at Trade-Ideas
More details on AGIO:
Agios Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery and development of medicines for the treatment of cancer and rare genetic metabolic disorders in the United States. Currently there are 2 analysts that rate Agios Pharmaceuticals a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Agios Pharmaceuticals has been 707,100 shares per day over the past 30 days. Agios has a market cap of $1.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.94 and a short float of 49.7% with 10.62 days to cover. Shares are down 32.9% year-to-date as of the close of trading on Monday.
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.
Analysis:
rates Agios Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- AGIOS PHARMACEUTICALS 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, AGIOS PHARMACEUTICALS reported poor results of -$3.13 versus -$1.59 in the prior year. For the next year, the market is expecting a contraction of 20.4% in earnings (-$3.77 versus -$3.13).
- 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 368.0% when compared to the same quarter one year ago, falling from -$4.96 million to -$23.20 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, AGIOS PHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 54.41%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 369.23% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- AGIO, with its decline in revenue, underperformed when compared the industry average of 15.2%. Since the same quarter one year prior, revenues slightly dropped by 8.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Agios Pharmaceuticals Ratings Report.
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.
