Perilous Reversal Stock: Keryx Biopharmaceuticals (KERX)
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 Keryx Biopharmaceuticals (KERX) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Keryx Biopharmaceuticals as such a stock due to the following factors:
- KERX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.1 million.
- KERX has traded 1.3 million shares today.
- KERX is down 3.2% today.
- KERX was up 8.4% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in KERX with the Ticky from Trade-Ideas. See the FREE profile for KERX NOW at Trade-IdeasMore details on KERX: Keryx Biopharmaceuticals, Inc., a biopharmaceutical company, focuses on the acquisition, development, and commercialization of pharmaceutical products for the treatment of renal disease in the United States. Currently there are 7 analysts that rate Keryx Biopharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.The average volume for Keryx Biopharmaceuticals has been 2.4 million shares per day over the past 30 days. Keryx has a market cap of $1.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 3.83 and a short float of 19.2% with 3.57 days to cover. Shares are up 403% 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 Keryx Biopharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, poor profit margins 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 655.2% when compared to the same quarter one year ago, falling from -$1.50 million to -$11.36 million.
- Net operating cash flow has significantly decreased to -$7.29 million or 91.89% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for KERYX BIOPHARMACEUTICALS INC is currently extremely low, coming in at 0.00%. KERX has continued with the weak profit margin when compared to the same quarter of last year.
- KERYX BIOPHARMACEUTICALS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, KERYX BIOPHARMACEUTICALS INC continued to lose money by earning -$0.36 versus -$0.42 in the prior year. For the next year, the market is expecting a contraction of 25.0% in earnings (-$0.45 versus -$0.36).
- 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, KERYX BIOPHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Keryx Biopharmaceuticals 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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV