Progenics Pharmaceuticals (PGNX) Flagged As Strong On High Volume

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.

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

  • PGNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.9 million.
  • PGNX has traded 164,240 shares today.
  • PGNX is trading at 2.11 times the normal volume for the stock at this time of day.
  • PGNX is trading at a new high 8.29% 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 PGNX:

Progenics Pharmaceuticals, Inc. develops medicines for oncology in the United States and internationally. PGNX has a PE ratio of 88.3. Currently there is 1 analyst that rates Progenics Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Progenics Pharmaceuticals has been 897,900 shares per day over the past 30 days. Progenics has a market cap of $369.1 million and is part of the health care sector and drugs industry. The stock has a beta of 2.81 and a short float of 22% with 10.53 days to cover. Shares are down 29.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Progenics Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 42.4% when compared to the same quarter one year ago, falling from -$8.55 million to -$12.18 million.
  • PROGENICS PHARMACEUTICAL INC's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PROGENICS PHARMACEUTICAL INC turned its bottom line around by earning $0.01 versus -$0.77 in the prior year. For the next year, the market is expecting a contraction of 5550.0% in earnings (-$0.55 versus $0.01).
  • Compared to its closing price of one year ago, PGNX's share price has jumped by 40.22%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, PROGENICS PHARMACEUTICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • PGNX, with its very weak revenue results, has greatly underperformed against the industry average of 21.4%. Since the same quarter one year prior, revenues plummeted by 119.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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