Trade-Ideas: Medivation (MDVN) Is Today's Post-Market Leader 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 Medivation (MDVN) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Medivation as such a stock due to the following factors:
- MDVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.6 million.
- MDVN is up 7.4% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MDVN with the Ticky from Trade-Ideas. See the FREE profile for MDVN NOW at Trade-IdeasMore details on MDVN: Medivation, Inc., a biopharmaceutical company, focuses on the development and commercialization of novel therapies to treat serious diseases in the United States. It offers XTANDI for the treatment of post-chemotherapy metastatic castration-resistant prostate cancer (mCRPC) patients. Currently there are 9 analysts that rate Medivation a buy, 1 analyst rates it a sell, and 5 rate it a hold.The average volume for Medivation has been 1.3 million shares per day over the past 30 days. Medivation has a market cap of $4.8 billion and is part of the health care sector and drugs industry. Shares are down 0.5% 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 Medivation as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally high debt management risk.Highlights from the ratings report include:
- The gross profit margin for MEDIVATION INC is currently extremely low, coming in at 9.32%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, MDVN's net profit margin of 2.86% is significantly lower than the industry average.
- The debt-to-equity ratio is very high at 2.71 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.51, which shows the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, MEDIVATION INC's return on equity significantly trails that of both the industry average and the S&P 500.
- MEDIVATION 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, MEDIVATION INC reported poor results of -$0.58 versus -$0.56 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus -$0.58).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 108.7% when compared to the same quarter one year prior, rising from -$31.66 million to $2.77 million.
- You can view the full Medivation 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