Allergan (AGN): Stock With Unusual Social Activity

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 11x the normal benchmarked social activity for this time of the day compared to its average of 0.80 mentions/day.
  • AGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $200.5 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.

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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 21.5. Currently there are 9 analysts that rate Allergan a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Allergan has been 2.0 million shares per day over the past 30 days. Allergan has a market cap of $27.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.66 and a short float of 0.8% with 1.36 days to cover. Shares are down 0.8% 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 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, notable return on equity, reasonable valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 13.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.35, 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 3.43, which clearly demonstrates the ability to cover short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, ALLERGAN INC's return on equity exceeds that of both the industry average and the S&P 500.
  • ALLERGAN INC has improved earnings per share by 34.1% 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).

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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