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

Cardiovascular Systems

(

CSII

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cardiovascular Systems as such a stock due to the following factors:

  • CSII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • CSII has traded 64,689 shares today.
  • CSII is up 3.1% today.
  • CSII was down 5.6% yesterday.

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More details on CSII:

Cardiovascular Systems, Inc., a medical device company, focuses on developing and commercializing minimally invasive treatment solutions for vascular diseases. Currently there are 6 analysts that rate Cardiovascular Systems a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cardiovascular Systems has been 292,100 shares per day over the past 30 days. Cardiovascular Systems has a market cap of $898.9 million and is part of the health care sector and health services industry. The stock has a beta of 0.63 and a short float of 5.8% with 2.94 days to cover. Shares are down 20% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cardiovascular Systems as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • CARDIOVASCULAR SYSTEMS INC's earnings per share declined by 10.3% in the most recent quarter compared to 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, CARDIOVASCULAR SYSTEMS INC reported poor results of -$1.11 versus -$0.92 in the prior year. For the next year, the market is expecting a contraction of 9.0% in earnings (-$1.21 versus -$1.11).
  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 56.2% when compared to the same quarter one year ago, falling from -$6.22 million to -$9.71 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CARDIOVASCULAR SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CARDIOVASCULAR SYSTEMS INC is currently very high, coming in at 77.83%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -27.79% is in-line with the industry average.
  • Compared to its closing price of one year ago, CSII's share price has jumped by 62.70%, 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 CSII do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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