Trade-Ideas: Endo International (ENDP) Is Today's Post-Market Leader Stock

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 Endo International ( ENDP) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Endo International as such a stock due to the following factors:

  • ENDP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $88.1 million.
  • ENDP is up 4.6% today from today's close.

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More details on ENDP:

Endo International plc, a specialty healthcare company, develops, manufactures, markets, and distributes branded pharmaceutical and generic products, and medical devices worldwide. Currently there are 10 analysts that rate Endo International a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Endo International has been 1.6 million shares per day over the past 30 days. Endo International has a market cap of $9.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.56 and a short float of 6.5% with 5.04 days to cover. Shares are down 4.5% year-to-date as of the close of trading on Monday.

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 Endo International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:
  • ENDP's revenue growth has slightly outpaced the industry average of 4.6%. Since the same quarter one year prior, revenues slightly increased by 0.9%. 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.
  • Compared to its closing price of one year ago, ENDP's share price has jumped by 46.37%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • ENDO INTERNATIONAL PLC 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENDO INTERNATIONAL PLC continued to lose money by earning -$4.94 versus -$6.57 in the prior year. This year, the market expects an improvement in earnings ($4.05 versus -$4.94).
  • Currently the debt-to-equity ratio of 1.57 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, ENDP's quick ratio is somewhat strong at 1.14, demonstrating the ability to handle short-term liquidity needs.
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 39.5% when compared to the same quarter one year ago, falling from $35.00 million to $21.16 million.

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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