InterMune (ITMN) Leading In Pre-Market 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 InterMune ( ITMN) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified InterMune as such a stock due to the following factors:

  • ITMN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $265.9 million.
  • ITMN traded 95,017 shares today in the pre-market hours as of 7:40 AM.
  • ITMN is up 36.4% today from yesterday's close.

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More details on ITMN:

InterMune, Inc., a biotechnology company, focuses on the research, development, and commercialization of therapies for pulmonology and orphan fibrotic diseases in North America and Europe. Currently there are 7 analysts that rate InterMune a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for InterMune has been 2.1 million shares per day over the past 30 days. InterMune has a market cap of $5.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 3.61 and a short float of 15.8% with 2.64 days to cover. Shares are up 261.2% 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 InterMune as a sell. Among the areas we feel are negative, one of the most important has been generally deteriorating net income.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 13.2% when compared to the same quarter one year ago, dropping from -$62.87 million to -$71.19 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, INTERMUNE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INTERMUNE INC is currently very high, coming in at 86.07%. Regardless of ITMN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ITMN's net profit margin of -199.20% significantly underperformed when compared to the industry average.
  • INTERMUNE INC has improved earnings per share by 7.7% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, INTERMUNE INC continued to lose money by earning -$2.74 versus -$2.84 in the prior year. For the next year, the market is expecting a contraction of 1.6% in earnings (-$2.78 versus -$2.74).
  • Net operating cash flow has slightly increased to -$52.59 million or 6.33% when compared to the same quarter last year. Despite an increase in cash flow of 6.33%, INTERMUNE INC is still growing at a significantly lower rate than the industry average of 100.59%.

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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