Trade-Ideas LLC identified

Perrigo

(

PRGO

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

  • PRGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $220.5 million.
  • PRGO is up 2.1% today from today's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PRGO with the Ticky from Trade-Ideas. See the FREE profile for PRGO NOW at Trade-Ideas

More details on PRGO:

Perrigo Company plc, together with its subsidiaries, develops, manufactures, markets, and distributes over-the-counter (OTC) consumer goods and pharmaceutical products worldwide. The stock currently has a dividend yield of 0.6%. Currently there are 5 analysts that rate Perrigo a buy, 1 analyst rates it a sell, and 11 rate it a hold.

The average volume for Perrigo has been 2.7 million shares per day over the past 30 days. Perrigo has a market cap of $13.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.69 and a short float of 4.9% with 2.56 days to cover. Shares are down 33.5% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Perrigo as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, deteriorating net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 31.8%. 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 PERRIGO CO PLC is rather high; currently it is at 51.00%. 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 -9.62% is in-line with the industry average.
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.93 is somewhat weak and could be cause for future problems.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 54.17%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 38.80% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, PERRIGO CO PLC's return on equity significantly trails that of both the industry average and the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.