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Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified NPS Pharmaceuticals as such a stock due to the following factors:
- NPSP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.9 million.
- NPSP has traded 1.4 million shares today.
- NPSP traded in a range 230.3% of the normal price range with a price range of $3.60.
- NPSP traded above its daily resistance level (quality: 69 days, meaning that the stock is crossing a resistance level set by the last 69 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on NPSP:
NPS Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development of therapeutic products in the United States. Its lead product is Gattex for the treatment of adult patients with short bowel syndrome (SBS) who are dependent on parenteral support. Currently there are 9 analysts that rate NPS Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for NPS Pharmaceuticals has been 2.1 million shares per day over the past 30 days. NPS has a market cap of $2.9 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 9.4% with 9.19 days to cover. Shares are down 9.6% year-to-date as of the close of trading on Thursday.
rates NPS Pharmaceuticals as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. 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:
- NPSP's very impressive revenue growth greatly exceeded the industry average of 26.2%. Since the same quarter one year prior, revenues leaped by 73.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 33.33% and other important driving factors, this stock has surged by 75.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Compared to other companies in the Biotechnology industry and the overall market, NPS PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income increased by 15.6% when compared to the same quarter one year prior, going from -$7.80 million to -$6.58 million.
- The debt-to-equity ratio of 1.33 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 4.08, which shows the ability to cover short-term cash needs.
- You can view the full NPS Pharmaceuticals Ratings Report.