Trade-Ideas LLC identified

Acorda Therapeutics

(

ACOR

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Acorda Therapeutics as such a stock due to the following factors:

  • ACOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.8 million.
  • ACOR has traded 60,595 shares today.
  • ACOR is trading at 2.81 times the normal volume for the stock at this time of day.
  • ACOR is trading at a new low 3.13% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. 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 (or avoid losses by trimming weak positions). 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ACOR with the Ticky from Trade-Ideas. See the FREE profile for ACOR NOW at Trade-Ideas

More details on ACOR:

TheStreet Recommends

Acorda Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and commercializes novel therapies for neurological disorders in the United States. ACOR has a PE ratio of 76. Currently there are 2 analysts that rate Acorda Therapeutics a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Acorda Therapeutics has been 613,900 shares per day over the past 30 days. Acorda has a market cap of $1.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.56 and a short float of 22.2% with 6.87 days to cover. Shares are down 6.8% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Acorda Therapeutics as a

buy

. 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 expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • ACOR's revenue growth has slightly outpaced the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 19.4%. 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.
  • The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.82, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ACORDA THERAPEUTICS INC is currently very high, coming in at 83.22%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ACOR's net profit margin of 3.11% significantly trails the industry average.
  • ACORDA THERAPEUTICS 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ACORDA THERAPEUTICS INC increased its bottom line by earning $0.42 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.94 versus $0.42).
  • 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 67.0% when compared to the same quarter one year ago, falling from $11.95 million to $3.94 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.