Agios Pharmaceuticals (AGIO) Showing Signs Of Perilous Reversal 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 Agios Pharmaceuticals ( AGIO) as a "perilous reversal" (up big yesterday but down big today) 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 $107.1 million.
  • AGIO has traded 53,034 shares today.
  • AGIO is down 4.1% today.
  • AGIO was up 14.5% yesterday.

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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. 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 709,800 shares per day over the past 30 days. Agios has a market cap of $2.9 billion and is part of the health care sector and drugs industry. Shares are up 249.9% 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. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:
  • The gross profit margin for AGIOS PHARMACEUTICALS is currently extremely low, coming in at 9.46%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, AGIO's net profit margin of 10.92% is significantly lower than the industry average.
  • AGIOS PHARMACEUTICALS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 37.7% in earnings (-$1.46 versus -$1.06).
  • 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.
  • This stock has increased by 302.27% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in AGIO do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 133.1% when compared to the same quarter one year prior, rising from -$11.18 million to $3.70 million.

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