Trade-Ideas LLC identified

Allergan

(

AGN

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Allergan as such a stock due to the following factors:

  • AGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $675.1 million.
  • AGN traded 12,265 shares today in the pre-market hours as of 9:13 AM.
  • AGN is up 2.6% today from yesterday's close.

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More details on AGN:

Allergan plc, a specialty pharmaceutical company, develops, manufactures, markets, and distributes medical aesthetics, biosimilar, and over-the-counter pharmaceutical products worldwide. It operates through US Brands, US Medical Aesthetics, International Brands, and Anda Distribution segments. AGN has a PE ratio of 18. Currently there are 13 analysts that rate Allergan a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Allergan has been 5.2 million shares per day over the past 30 days. Allergan has a market cap of $90.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.09 and a short float of 1.5% with 2.16 days to cover. Shares are down 25.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Allergan 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 find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 1.1%. Since the same quarter one year prior, revenues rose by 48.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ALLERGAN PLC 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ALLERGAN PLC continued to lose money by earning -$8.63 versus -$9.61 in the prior year. This year, the market expects an improvement in earnings ($14.21 versus -$8.63).
  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.48 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, ALLERGAN PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • AGN has underperformed the S&P 500 Index, declining 22.57% from its price level of one year ago. 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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