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 Allergan ( AGN) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Allergan as such a stock due to the following factors:
- AGN has 10x the normal benchmarked social activity for this time of the day compared to its average of 0.67 mentions/day.
- AGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $206.3 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in AGN with the Ticky from Trade-Ideas. See the FREE profile for AGN NOW at Trade-Ideas More details on AGN: Allergan, Inc. operates as a multi-specialty healthcare company primarily in the United States, Europe, Latin America, and the Asia Pacific. The stock currently has a dividend yield of 0.2%. AGN has a PE ratio of 23.3. Currently there are 10 analysts that rate Allergan a buy, no analysts rate it a sell, and 11 rate it a hold. The average volume for Allergan has been 1.9 million shares per day over the past 30 days. Allergan has a market cap of $27.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.71 and a short float of 0.8% with 1.02 days to cover. Shares are down 0.1% year to date as of the close of trading on Thursday. 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 Allergan as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- AGN's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 10.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.27, which clearly demonstrates the ability to cover short-term cash needs.
- ALLERGAN INC has improved earnings per share by 21.9% 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, ALLERGAN INC increased its bottom line by earning $3.57 versus $3.01 in the prior year. This year, the market expects an improvement in earnings ($4.76 versus $3.57).
- Net operating cash flow has increased to $481.50 million or 12.13% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -1.39%.
- The gross profit margin for ALLERGAN INC is currently very high, coming in at 89.57%. 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 22.52% trails the industry average.
- You can view the full Allergan Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.