Stock To Watch: Intrexon (XON) In Perilous Reversal

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 Intrexon ( XON) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Intrexon as such a stock due to the following factors:

  • XON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
  • XON has traded 81,269 shares today.
  • XON is down 3.4% today.
  • XON was up 11% yesterday.

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More details on XON:

Intrexon Corporation, a biotechnology company, operates in the synthetic biology field. Synthetic biology is a discipline that applies engineering principles to biological systems. XON has a PE ratio of 2.7. Currently there are 2 analysts that rate Intrexon a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Intrexon has been 461,400 shares per day over the past 30 days. Intrexon has a market cap of $2.2 billion and is part of the health care sector and drugs industry. Shares are up 0.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Intrexon 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:
  • INTREXON CORP 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 2466.7% in earnings (-$0.77 versus -$0.03).
  • 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 772.8% when compared to the same quarter one year ago, falling from -$5.96 million to -$52.04 million.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
  • Compared to other companies in the Biotechnology industry and the overall market, INTREXON CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has fallen to -$13.65 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.

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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