Trade-Ideas LLC identified

Incyte

(

INCY

) as a strong on high relative volume 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 $121.8 million.
  • INCY has traded 213,413 shares today.
  • INCY is trading at 2.06 times the normal volume for the stock at this time of day.
  • INCY is trading at a new high 6.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 INCY:

Incyte Corporation focuses on the discovery, development, and commercialization of proprietary therapeutics in oncology. It offers JAKAFI for the treatment of myelofibrosis and polycythemia vera cancers. INCY has a PE ratio of 2308. Currently there are 12 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 2.6 million shares per day over the past 30 days. Incyte has a market cap of $13.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.67 and a short float of 4.6% with 3.74 days to cover. Shares are down 37% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Incyte as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:

  • INCY's very impressive revenue growth greatly exceeded the industry average of 6.8%. Since the same quarter one year prior, revenues leaped by 96.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • INCYTE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, INCYTE CORP turned its bottom line around by earning $0.01 versus -$0.32 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus $0.01).
  • In comparison to the other companies in the Biotechnology industry and the overall market, INCYTE CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for INCYTE CORP is currently lower than what is desirable, coming in at 31.03%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, INCY's net profit margin of 22.62% is significantly lower than the industry average.
  • INCY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.80%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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