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

Akorn

(

AKRX

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Akorn as such a stock due to the following factors:

  • AKRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.9 million.
  • AKRX has traded 840,095 shares today.
  • AKRX is trading at a new lifetime high.

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More details on AKRX:

Akorn, Inc. engages in the manufacture and marketing of diagnostic and therapeutic ophthalmic pharmaceuticals products, hospital drugs, and injectable pharmaceuticals in the United States and internationally. AKRX has a PE ratio of 61.2. Currently there are 6 analysts that rate Akorn a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Akorn has been 839,200 shares per day over the past 30 days. Akorn has a market cap of $2.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.04 and a short float of 13.6% with 9.83 days to cover. Shares are up 83.2% year to date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Akorn 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, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 17.6%. 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, 0.45, 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 3.07, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $21.01 million or 39.83% when compared to the same quarter last year. In addition, AKORN INC has also modestly surpassed the industry average cash flow growth rate of 30.30%.
  • Compared to its closing price of one year ago, AKRX's share price has jumped by 88.74%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • 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 Pharmaceuticals industry and the overall market on the basis of return on equity, AKORN INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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