Trade-Ideas: Omeros Corporation (OMER) Is Today's "Perilous Reversal" Stock
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 Omeros Corporation (OMER) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Omeros Corporation as such a stock due to the following factors:
- OMER has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.9 million.
- OMER has traded 8.6 million shares today.
- OMER is down 3.9% today.
- OMER was up 18.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in OMER with the Ticky from Trade-Ideas. See the FREE profile for OMER NOW at Trade-IdeasMore details on OMER: Omeros Corporation, a clinical-stage biopharmaceutical company, engages in discovering, developing, and commercializing products targeting inflammation, coagulopathies, and disorders of the central nervous system. Currently there are 4 analysts that rate Omeros Corporation a buy, no analysts rate it a sell, and none rate it a hold.The average volume for Omeros Corporation has been 686,800 shares per day over the past 30 days. Omeros has a market cap of $270.4 million and is part of the health care sector and drugs industry. The stock has a beta of 0.91 and a short float of 26.1% with 1.87 days to cover. Shares are up 74.6% year to date as of the close of trading on Wednesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Omeros Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and weak operating cash flow.Highlights from the ratings report include:
- OMEROS CORP's earnings per share declined by 26.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, OMEROS CORP reported poor results of -$1.59 versus -$1.29 in the prior year. For the next year, the market is expecting a contraction of 8.2% in earnings (-$1.72 versus -$1.59).
- 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 Pharmaceuticals industry. The net income has significantly decreased by 59.2% when compared to the same quarter one year ago, falling from -$8.54 million to -$13.59 million.
- Net operating cash flow has declined marginally to -$9.39 million or 6.00% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, OMEROS CORP has marginally lower results.
- OMER, with its very weak revenue results, has greatly underperformed against the industry average of 3.9%. Since the same quarter one year prior, revenues plummeted by 90.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- You can view the full Omeros Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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