Shire (SHPG) Reaches New Lifetime High Today

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 Shire ( SHPG) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Shire as such a stock due to the following factors:

  • SHPG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $304.0 million.
  • SHPG has traded 138,611 shares today.
  • SHPG is trading at a new lifetime high.

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More details on SHPG:

Shire plc, a biopharmaceutical company, together with its subsidiaries, researches, develops, licenses, manufactures, markets, distributes, and sells pharmaceutical products. The stock currently has a dividend yield of 0.2%. SHPG has a PE ratio of 68.1. Currently there are 4 analysts that rate Shire a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Shire has been 1.7 million shares per day over the past 30 days. Shire has a market cap of $48.5 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 Wednesday.

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 Shire as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 19.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 75.81% and other important driving factors, this stock has surged by 112.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SHPG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SHIRE PLC reported significant earnings per share improvement 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 two years. We feel that this trend should continue. During the past fiscal year, SHIRE PLC increased its bottom line by earning $7.37 versus $3.89 in the prior year. This year, the market expects an improvement in earnings ($10.01 versus $7.37).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 102.7% when compared to the same quarter one year prior, rising from $258.10 million to $523.10 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Pharmaceuticals industry and the overall market, SHIRE PLC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

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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