Alexion Pharmaceuticals, Inc. (ALXN) powered higher yesterday by 2.5% on take-over talks suggesting that Roche (RHHBY.OB) could bid as high as $128/share for the company. Even without this news, this is a solid, fast growing company with EPS growth of 37% and revenue growth of 46%.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock, as it directly correlates to the profitability of the company as a whole. The one used for this analysis is the EPS growth of the projected current year vs. last year.
Revenue growth measures of how much more (or less) the company has sold during a specified time period compared with another period. The one used for this analysis is the trailing 12 months vs. the prior 12 months revenues. When looking at a company's financials, it is not enough to just look at the revenue for the current period. An investor wants to see how the company grows or improves over time and will give a much better idea of how well a company is doing.
Companies with high earnings and revenue growth rates tend to make good investments, as they tend to perform better than the overall market.
Alexion Pharmaceuticals has a P/E of 103.30, EPS Growth Rate of 37%, and a Revenue Growth Rate of 46%.
A biopharmaceutical company, Alexion Pharmaceuticals engages in the innovation, development, and commercialization of life-transforming therapeutic products for treating patients with severe and ultra-rare disorders in the United States, Europe, Latin America, Japan, and the Asia Pacific.
Alexion Pharmaceuticals focuses on developing products for the treatment of diseases in the areas of hematology, nephrology, neurology, metabolic disorders, oncology, and ophthalmology. The company offers Soliris(eculizumab), a therapeutic product for the treatment of patients with paroxysmal nocturnal hemoglobinuria (PNH), a blood disorder; and atypical hemolytic uremic syndrome (aHUS), an ultra-rare and life-threatening genetic disease.
The company recently raised its outlook for the year and has a potential second drug coming to market. The stock moved higher yesterday on take-over news by Roche for as high as $128 per share and offers some downside support should the overall market reverses in the short term. Even without that news, technically, this looks like a good entry point after pulling back a bit from its recent advance to $109.96 (all-time high).
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ALXN over the next 72 hours.