NewLink Genetics (NLNK) In A Perilous Reversal

Trade-Ideas LLC identified NewLink Genetics (NLNK) as a "perilous reversal" (up big yesterday but down big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

NewLink Genetics

(

NLNK

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified NewLink Genetics as such a stock due to the following factors:

  • NLNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.4 million.
  • NLNK has traded 162,087 shares today.
  • NLNK is down 4.1% today.
  • NLNK was up 10.8% yesterday.

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More details on NLNK:

NewLink Genetics Corporation, a biopharmaceutical company, focuses on discovering, developing, and commercializing immunotherapeutic products to enhance treatment options for patients with cancer. NLNK has a PE ratio of 1. Currently there are 2 analysts that rate NewLink Genetics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for NewLink Genetics has been 516,200 shares per day over the past 30 days. NewLink has a market cap of $1.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.01 and a short float of 21.8% with 8.70 days to cover. Shares are up 13% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates NewLink Genetics as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • NLNK's very impressive revenue growth greatly exceeded the industry average of 4.8%. Since the same quarter one year prior, revenues leaped by 407.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • NLNK's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • 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, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • NEWLINK GENETICS CORP 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, NEWLINK GENETICS CORP turned its bottom line around by earning $3.19 versus -$1.24 in the prior year. For the next year, the market is expecting a contraction of 149.7% in earnings (-$1.59 versus $3.19).
  • 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 184.1% when compared to the same quarter one year ago, falling from -$5.60 million to -$15.91 million.

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