Trade-Ideas: Exact (EXAS) 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
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Exact as such a stock due to the following factors:
- EXAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $74.7 million.
- EXAS is up 2.3% today from today's close.
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More details on EXAS:
Exact Sciences Corporation, a molecular diagnostics company, focuses on developing diagnostic screening products for the early detection and prevention of colorectal pre-cancer and cancer. Currently there are 8 analysts that rate Exact a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Exact has been 1.8 million shares per day over the past 30 days. Exact has a market cap of $1.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.93 and a short float of 33.9% with 8.53 days to cover. Shares are down 20.2% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Exact as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- EXACT SCIENCES 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. 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, EXACT SCIENCES CORP reported poor results of -$1.24 versus -$0.69 in the prior year. For the next year, the market is expecting a contraction of 31.4% in earnings (-$1.63 versus -$1.24).
- 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 166.2% when compared to the same quarter one year ago, falling from -$12.19 million to -$32.44 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, EXACT SCIENCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Compared to its closing price of one year ago, EXAS's share price has jumped by 62.44%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in EXAS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- EXAS'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. Along with this, the company maintains a quick ratio of 16.22, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full Exact Ratings Report.
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