Incyte (INCY) Lags In Post-Market Trading

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 post-market laggard 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 $102.1 million.
  • INCY is down 14.1% today from today's close.

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More details on INCY:

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary small molecule drugs primarily for oncology and inflammation. Currently there are 12 analysts that rate Incyte a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Incyte has been 2.2 million shares per day over the past 30 days. Incyte has a market cap of $9.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.26 and a short float of 7.7% with 3.93 days to cover. Shares are up 7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Incyte as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.

Highlights from the ratings report include:
  • 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, INCYTE CORP reported poor results of -$0.54 versus -$0.36 in the prior year. For the next year, the market is expecting a contraction of 15.7% in earnings (-$0.63 versus -$0.54).
  • 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 116.7% when compared to the same quarter one year ago, falling from -$15.67 million to -$33.96 million.
  • Compared to its closing price of one year ago, INCY's share price has jumped by 127.96%, 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.
  • INCY's revenue growth has slightly outpaced the industry average of 25.9%. Since the same quarter one year prior, revenues rose by 26.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

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