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Trade-Ideas: Onyx Pharmaceuticals (ONXX) Is Today's Pre-Market Mover With Heavy Volume Stock

Tickers in this article: ONXX

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 Onyx Pharmaceuticals ( ONXX) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Onyx Pharmaceuticals as such a stock due to the following factors:

  • ONXX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $392.7 million.
  • ONXX traded 385,982 shares today in the pre-market hours as of 7:44 AM, representing 12.1% of its average daily volume.

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More details on ONXX:

Onyx Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapies that target the molecular mechanisms that cause cancer in the United States and internationally. Currently there are 6 analysts that rate Onyx Pharmaceuticals a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Onyx Pharmaceuticals has been 2.3 million shares per day over the past 30 days. Onyx has a market cap of $8.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.00 and a short float of 8.4% with 1.64 days to cover. Shares are up 54.4% year to date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Onyx Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • ONXX's very impressive revenue growth greatly exceeded the industry average of 9.3%. Since the same quarter one year prior, revenues leaped by 110.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ONXX's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • ONYX PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ONYX PHARMACEUTICALS INC swung to a loss, reporting -$2.92 versus $0.94 in the prior year. This year, the market expects an improvement in earnings (-$1.62 versus -$2.92).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ONYX PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.