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 Incyte ( INCY) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Incyte as such a stock due to the following factors:
- INCY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.9 million.
- INCY has traded 1.2 million shares today.
- INCY is down 3.1% today.
- INCY was up 5.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in INCY with the Ticky from Trade-Ideas. See the FREE profile for INCY NOW at Trade-Ideas More details on INCY: Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary small molecule drugs for oncology and inflammation. Currently there are 11 analysts that rate Incyte a buy, 1 analyst rates it a sell, and 2 rate it a hold. The average volume for Incyte has been 1.7 million shares per day over the past 30 days. Incyte has a market cap of $5.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.58 and a short float of 9.3% with 4.24 days to cover. Shares are up 117% year to date as of the close of trading on Friday. 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 Incyte as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow and feeble growth in its earnings per share. 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 Biotechnology industry. The net income has significantly decreased by 163.7% when compared to the same quarter one year ago, falling from $4.04 million to -$2.57 million.
- The gross profit margin for INCYTE CORP is rather low; currently it is at 24.95%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.52% is significantly below that of the industry average.
- Net operating cash flow has declined marginally to $8.08 million or 7.37% when compared to the same quarter last year. Despite a decrease in cash flow INCYTE CORP is still fairing well by exceeding its industry average cash flow growth rate of -19.71%.
- INCYTE CORP 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, INCYTE CORP continued to lose money by earning -$0.36 versus -$1.48 in the prior year. For the next year, the market is expecting a contraction of 2.8% in earnings (-$0.37 versus -$0.36).
- Compared to its closing price of one year ago, INCY's share price has jumped by 115.70%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in INCY do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full Incyte 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.