Trade-Ideas LLC identified

Incyte

(

INCY

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Incyte as such a stock due to the following factors:

  • INCY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $197.0 million.
  • INCY is down 10.9% today from today's close.

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More details on INCY:

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics primarily for oncology. Currently there are 11 analysts that rate Incyte a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Incyte has been 1.8 million shares per day over the past 30 days. Incyte has a market cap of $14.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.05 and a short float of 3% with 1.39 days to cover. Shares are down 29.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Incyte as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow and generally high debt management risk.

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 166.8% when compared to the same quarter one year ago, falling from $59.29 million to -$39.58 million.
  • The gross profit margin for INCYTE CORP is currently extremely low, coming in at 5.90%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -21.09% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $7.72 million or 72.20% 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 debt-to-equity ratio is very high at 7.03 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 4.64, which shows the ability to cover short-term cash needs.
  • After a year of stock price fluctuations, the net result is that INCY's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.

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