Today we are going to look at Alexion Pharmaceuticals (ALXN) to see if it is time to buy or sell the stock. Since late December 2018, it has gone up from around $95 to over $140.
Recently it has pulled back to the mid $120s. We will look at the 7 fundamental parameters I look to see if a stock can be considered a growth stock.
Then we will take a look at the technical analysis side using the setups I have created and use for my trades. I have no plans to own Alexion Pharmaceuticals in the next 72 hours and do not hold any positions in ALXN.
Alexion Pharmaceuticals (ALXN): Time to Buy or Sell the Stock? – Fundamentals
There are 7 fundamental markers I look for in a stock. I try to only purchase growth stocks so these are the parameters I look for to see if a stock meets the majority of the markers. I prefer to have all seven fulfilled. You can it more in depth here: https://evancarthey.com/how-to-scan-for-winning-stocks-an-insiders-view-to-my-process/
- Market Cap: > $300 million
- EPS growth past 5 years: >0%
- P/E: Over 10
- EPS growth next 5 years: >0%
- Sales growth past 5 years: Over 20%
- Debt/Equity: <0.1
- Sales growth qtr over qtr: Over 5%
Does the stock meet these 7 markers?
- Market Cap: 28.25B (YES)
- EPS growth past 5 years: -40.60% (NO)
- P/E: 90.01 YES
- EPS growth next 5 years: 14.37% (YES)
- Sales growth past 5 years: 21.60% (YES)
- Debt/Equity: 0.27 (NO)
- Sales growth qtr over qtr: 22.50% (YES)
I used Finviz.com for the fundamental analysis screener. With Alexion Pharmaceuticals only meeting 5 out of 7 of the markers then I cannot consider this a growth stock. One thing to point out is the Debt/Equity is only at 0.27 so that is very good even though it didn’t meet the parameter of 0.10 I look for. The EPS growth from the past 5 years is interesting since it is such a high number. Overall this is a stock I would keep an eye on because it does have some qualities that are positive.
Technical Analysis for Alexion Pharmaceuticals
For this setup which is the 61B long we are waiting for price to retrace to hit the pink lines. The first pink line is at $114.97 and once hit then the exit is the top of the green box at $127.85. But if price keeps going down before hitting the exit and hits the 2nd pink line at $106.44 then the exit moves to the top of the teal box at $114.35. Finally. if price keeps on retracing lower without hitting the exit and hits the lowest pink line at $92.74 then the exit moves to the top of the blue box at $105.92. That is the last exit move even if price continues to move lower.
If an exit is hit then the move is over and you do not look to get in at the other entry levels. The trade is taken off the table and we will look for another move.
If you want to go way back to 2003 using the weekly chart then I have a long setup that is live for you. You can see how price made the entry when it hit the 38% Fibonacci retracement level (the top pink line). The exit is the top of the green box at $149.68. The same rules apply to the previous setup where if a pink line is hit then the exit moves to the top of that colored box. If an exit is hit then the move is over and you do not get in anymore.
Popular Links
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