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 Alnylam Pharmaceuticals ( ALNY) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Alnylam Pharmaceuticals as such a stock due to the following factors:
- ALNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $67.4 million.
- ALNY has traded 326,247 shares today.
- ALNY is down 3.1% today.
- ALNY was up 7.7% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ALNY with the Ticky from Trade-Ideas. See the FREE profile for ALNY NOW at Trade-Ideas More details on ALNY: Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, is engaged in discovering, developing, and commercializing novel therapeutics based on RNA interference (RNAi). Currently there are 4 analysts that rate Alnylam Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Alnylam Pharmaceuticals has been 903,400 shares per day over the past 30 days. Alnylam has a market cap of $4.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.25 and a short float of 8.5% with 4.81 days to cover. Shares are down 8.6% 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 Alnylam Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity 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 2684.2% when compared to the same quarter one year ago, falling from -$9.01 million to -$250.94 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, ALNYLAM PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ALNYLAM PHARMACEUTICALS INC 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, ALNYLAM PHARMACEUTICALS INC continued to lose money by earning -$1.43 versus -$2.08 in the prior year. For the next year, the market is expecting a contraction of 36.4% in earnings (-$1.95 versus -$1.43).
- ALNY, with its very weak revenue results, has greatly underperformed against the industry average of 26.2%. Since the same quarter one year prior, revenues plummeted by 55.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Compared to its closing price of one year ago, ALNY's share price has jumped by 99.49%, 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 ALNY 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 Alnylam Pharmaceuticals 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.