Trade-Ideas LLC identified

Agios Pharmaceuticals

(

AGIO

) 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 $44.9 million.
  • AGIO has traded 79,196 shares today.
  • AGIO is down 3.6% today.
  • AGIO was up 14.2% 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, focuses on the development and commercialization of therapeutics in the field of cancer metabolism and rare genetic disorders of metabolism in the United States. Currently there is 1 analyst that rates Agios Pharmaceuticals a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Agios Pharmaceuticals has been 690,000 shares per day over the past 30 days. Agios has a market cap of $2.1 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 22.2% with 6.24 days to cover. Shares are down 42.5% 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.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Agios Pharmaceuticals as a

sell

. 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, weak operating cash flow 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 year. We anticipate that this should continue in the coming year. During the past fiscal year, AGIOS PHARMACEUTICALS reported poor results of -$1.59 versus -$1.06 in the prior year. For the next year, the market is expecting a contraction of 50.3% in earnings (-$2.39 versus -$1.59).
  • 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 1186.8% when compared to the same quarter one year ago, falling from $3.70 million to -$40.26 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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.
  • Net operating cash flow has declined marginally to -$24.82 million or 5.74% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, AGIOS PHARMACEUTICALS has marginally lower results.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.13%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1170.00% 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.

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.