Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Endo International as such a stock due to the following factors:
- ENDP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $244.0 million.
- ENDP has traded 2.5 million shares today.
- ENDP is trading at 5.83 times the normal volume for the stock at this time of day.
- ENDP is trading at a new low 7.07% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on ENDP:
Endo International plc develops, manufactures, and distributes pharmaceutical products and devices worldwide. Its U.S. Currently there are 7 analysts that rate Endo International a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Endo International has been 5.7 million shares per day over the past 30 days. Endo International has a market cap of $6.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.95 and a short float of 5.9% with 1.15 days to cover. Shares are down 53.5% year-to-date as of the close of trading on Wednesday.
rates Endo International as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.
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 Pharmaceuticals industry. The net income has significantly decreased by 121.5% when compared to the same quarter one year ago, falling from -$53.48 million to -$118.46 million.
- The debt-to-equity ratio of 1.45 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, ENDP maintains a poor quick ratio of 0.75, which illustrates the inability to avoid short-term cash problems.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, ENDO INTERNATIONAL PLC's return on equity significantly trails that of both the industry average and the S&P 500.
- ENDP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 67.84%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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 gross profit margin for ENDO INTERNATIONAL PLC is rather high; currently it is at 58.87%. Regardless of ENDP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ENDP's net profit margin of -11.03% significantly underperformed when compared to the industry average.
- You can view the full Endo International Ratings Report.