Trade-Ideas LLC identified

Eagle Pharmaceuticals

(

EGRX

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Eagle Pharmaceuticals as such a stock due to the following factors:

  • EGRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.2 million.
  • EGRX has traded 101,785 shares today.
  • EGRX is down 4.1% today.
  • EGRX was up 6.3% yesterday.

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More details on EGRX:

Eagle Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing injectable products primarily in the critical care and oncology areas in the United States. Currently there are 4 analysts that rate Eagle Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Eagle Pharmaceuticals has been 425,200 shares per day over the past 30 days. Eagle has a market cap of $674.9 million and is part of the health care sector and drugs industry. Shares are down 48.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Eagle Pharmaceuticals as a

sell

. Among the areas we feel are negative, one of the most important has been generally deteriorating net income.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 104.5% when compared to the same quarter one year ago, falling from $19.70 million to -$0.90 million.
  • The revenue fell significantly faster than the industry average of 17.8%. Since the same quarter one year prior, revenues fell by 18.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • EAGLE PHARMACEUTICALS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This year, the market expects an improvement in earnings ($4.33 versus $0.20).
  • The gross profit margin for EAGLE PHARMACEUTICALS INC is rather high; currently it is at 50.70%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, EGRX's net profit margin of -3.02% significantly underperformed when compared to the industry average.
  • Compared to other companies in the Biotechnology industry and the overall market, EAGLE PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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