Today's Pre-Market Trading Very Positive For Allergan (AGN)

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 Allergan ( AGN) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Allergan as such a stock due to the following factors:

  • AGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $531.7 million.
  • AGN traded 54,635 shares today in the pre-market hours as of 7:46 AM.
  • AGN is up 4.8% today from yesterday's close.

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More details on AGN:

Allergan, Inc. operates as a multi-specialty health care company primarily in the United States, Europe, Latin America, and the Asia Pacific. The stock currently has a dividend yield of 0.1%. AGN has a PE ratio of 45.9. Currently there are 9 analysts that rate Allergan a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Allergan has been 2.3 million shares per day over the past 30 days. Allergan has a market cap of $58.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.93 and a short float of 1.5% with 1.78 days to cover. Shares are up 76.6% 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 Allergan as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.7%. Since the same quarter one year prior, revenues rose by 16.6%. 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.
  • The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.29, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has slightly increased to $594.50 million or 2.67% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.99%.
  • The gross profit margin for ALLERGAN INC is currently very high, coming in at 90.62%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.19% trails the industry average.
  • Compared to its closing price of one year ago, AGN's share price has jumped by 106.97%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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