Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Alexion Pharmaceuticals as such a stock due to the following factors:
- ALXN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $167.0 million.
- ALXN has a PE ratio of 97.3.
- ALXN is currently in the upper 30% of its 1-year range.
- ALXN is in the upper 25% of its 20-day range.
- ALXN is in the upper 35% of its 5-day range.
- ALXN is currently trading above yesterday's high.
- ALXN has experienced a gap between today's open and yesterday's close of 0.9%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on ALXN:
Alexion Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes life-transforming therapeutic products. ALXN has a PE ratio of 97.3. Currently there are 13 analysts that rate Alexion Pharmaceuticals a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Alexion Pharmaceuticals has been 1.7 million shares per day over the past 30 days. Alexion has a market cap of $32.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.53 and a short float of 2.4% with 3.66 days to cover. Shares are up 22.1% year-to-date as of the close of trading on Friday.
rates Alexion Pharmaceuticals as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- ALXN's very impressive revenue growth greatly exceeded the industry average of 26.2%. Since the same quarter one year prior, revenues leaped by 67.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ALXN's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.01, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for ALEXION PHARMACEUTICALS INC is currently very high, coming in at 95.82%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.12% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 93.8% when compared to the same quarter one year prior, rising from $82.22 million to $159.35 million.
- Powered by its strong earnings growth of 92.68% and other important driving factors, this stock has surged by 59.57% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Alexion Pharmaceuticals Ratings Report.