ISIS Pharmaceuticals (ISIS) Flagged As A Storm The Castle Stock
Trade-Ideas LLC identified
(
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified ISIS Pharmaceuticals as such a stock due to the following factors:
- ISIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $110.3 million.
- ISIS has traded 1.5 million shares today.
- ISIS is trading at 2.21 times the normal volume for the stock at this time of day.
- ISIS crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on ISIS:
Isis Pharmaceuticals, Inc. engages in the discovery and development of antisense drugs using novel drug discovery platform. ISIS has a PE ratio of 284. Currently there are 3 analysts that rate ISIS Pharmaceuticals a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for ISIS Pharmaceuticals has been 1.8 million shares per day over the past 30 days. ISIS has a market cap of $6.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.97 and a short float of 14.9% with 8.03 days to cover. Shares are down 9.5% year-to-date as of the close of trading on Friday.
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Analysis:
rates ISIS Pharmaceuticals as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- ISIS's very impressive revenue growth greatly exceeded the industry average of 11.3%. Since the same quarter one year prior, revenues leaped by 111.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 395.1% when compared to the same quarter one year prior, rising from -$12.08 million to $35.65 million.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- 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. In comparison to the other companies in the Biotechnology industry and the overall market, ISIS PHARMACEUTICALS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The debt-to-equity ratio of 1.32 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 8.02, which shows the ability to cover short-term cash needs.
- You can view the full ISIS Pharmaceuticals Ratings Report.
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