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 $173.3 million.
  • SHPG traded 40,295 shares today in the pre-market hours as of 9:04 AM.
  • SHPG is up 2% 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 0.4%. SHPG has a PE ratio of 53. Currently there are 11 analysts that rate Shire a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Shire has been 2.9 million shares per day over the past 30 days. Shire has a market cap of $38.2 billion and is part of the health care sector and drugs industry. Shares are down 5.2% year-to-date as of the close of trading on Wednesday.

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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, reasonable valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 20.2%. 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. Regardless of the strong results of the gross profit margin, the net profit margin of 24.51% trails the industry average.
  • 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 0.34 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • SHIRE PLC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SHIRE PLC reported lower earnings of $6.76 versus $16.67 in the prior year. This year, the market expects an improvement in earnings ($12.63 versus $6.76).

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