Strong On High Relative Volume: Agios Pharmaceuticals (AGIO)

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 Agios Pharmaceuticals ( AGIO) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Agios Pharmaceuticals as such a stock due to the following factors:

  • AGIO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.2 million.
  • AGIO has traded 118,076 shares today.
  • AGIO is trading at 8.12 times the normal volume for the stock at this time of day.
  • AGIO is trading at a new high 4.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on AGIO:

Agios Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics in the field of cancer metabolism and inborn errors of metabolism (IEMs) in the United States. AGIO has a PE ratio of 28.9. Currently there are 2 analysts that rate Agios Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Agios Pharmaceuticals has been 339,500 shares per day over the past 30 days. Agios has a market cap of $1.5 billion and is part of the health care sector and drugs industry. Shares are up 81.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Agios Pharmaceuticals 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:
  • AGIOS PHARMACEUTICALS 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. For the next year, the market is expecting a contraction of 83.5% in earnings (-$1.95 versus -$1.06).
  • 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 112.3% when compared to the same quarter one year ago, falling from -$8.62 million to -$18.30 million.
  • Compared to other companies in the Biotechnology industry and the overall market, AGIOS PHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has fallen to -$1.07 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.
  • Compared to its closing price of one year ago, AGIO's share price has jumped by 63.46%, exceeding the performance of the broader market during that same time frame. Despite the fact that the stock's value has already enjoyed nice gains in the past year, we feel that the risks surrounding an investment in this stock outweigh any potential future returns.

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