Trade-Ideas LLC identified

Shire

(

SHPG

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

  • SHPG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $457.3 million.
  • SHPG traded 44,049 shares today in the pre-market hours as of 9:09 AM.
  • SHPG is up 2.1% today from yesterday's close.

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More details on SHPG:

Shire plc, a biotech company, together with its subsidiaries, engages in the research, development, licensing, manufacture, marketing, distribution, and sale of medicines for patients with rare diseases and other select conditions. The stock currently has a dividend yield of 0.5%. SHPG has a PE ratio of 48. Currently there are 10 analysts that rate Shire a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Shire has been 2.4 million shares per day over the past 30 days. Shire has a market cap of $35.0 billion and is part of the health care sector and drugs industry. Shares are down 14.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Shire as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 14.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for SHIRE PLC is currently very high, coming in at 86.69%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.51% is above that of the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income increased by 2.1% when compared to the same quarter one year prior, going from $410.40 million to $419.00 million.
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.32 is very weak and demonstrates a lack of ability to pay short-term obligations.

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