Trade-Ideas LLC identified

Valeant Pharmaceuticals International

(

VRX

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

  • VRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.5 billion.
  • VRX traded 62,403 shares today in the pre-market hours as of 8:24 AM.
  • VRX is down 2.8% today from Thursday's close.

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More details on VRX:

Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide. VRX has a PE ratio of 17. Currently there are 6 analysts that rate Valeant Pharmaceuticals International a buy, 3 analysts rate it a sell, and 8 rate it a hold.

The average volume for Valeant Pharmaceuticals International has been 16.3 million shares per day over the past 30 days. Valeant Pharmaceuticals International has a market cap of $10.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.15 and a short float of 4.2% with 0.22 days to cover. Shares are down 69.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Valeant Pharmaceuticals International as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 2.3%. Since the same quarter one year prior, revenues rose by 22.3%. 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 VALEANT PHARMACEUTICALS INTL is rather high; currently it is at 50.18%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, VRX's net profit margin of -12.06% significantly underperformed when compared to the industry average.
  • VALEANT PHARMACEUTICALS INTL 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, VALEANT PHARMACEUTICALS INTL swung to a loss, reporting -$0.78 versus $2.67 in the prior year. This year, the market expects an improvement in earnings ($8.92 versus -$0.78).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 83.59%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 162.82% 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, 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 Pharmaceuticals industry. The net income has significantly decreased by 162.9% when compared to the same quarter one year ago, falling from $534.90 million to -$336.40 million.

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