Trade-Ideas: Alexion Pharmaceuticals (ALXN) Is Today's Pre-Market Laggard Stock

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 Alexion Pharmaceuticals ( ALXN) as a pre-market laggard 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 $313.2 million.
  • ALXN traded 31,600 shares today in the pre-market hours as of 8:19 AM.
  • ALXN is down 2.7% today from yesterday's close.

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More details on ALXN:

Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of life-transforming therapeutic products. ALXN has a PE ratio of 77.3. Currently there are 16 analysts that rate Alexion Pharmaceuticals a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Alexion Pharmaceuticals has been 1.6 million shares per day over the past 30 days. Alexion has a market cap of $22.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.46 and a short float of 2.1% with 1.30 days to cover. Shares are up 20.3% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Alexion Pharmaceuticals as a buy. 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 12.5%. Since the same quarter one year prior, revenues rose by 38.5%. 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 0.07 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 4.55, which clearly demonstrates the ability to cover short-term cash needs.
  • ALEXION PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ALEXION PHARMACEUTICALS INC increased its bottom line by earning $1.27 versus $0.91 in the prior year. This year, the market expects an improvement in earnings ($2.96 versus $1.27).
  • 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 81.0% when compared to the same quarter one year prior, rising from $45.41 million to $82.22 million.
  • The gross profit margin for ALEXION PHARMACEUTICALS INC is currently very high, coming in at 91.41%. 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 24.25% trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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