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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.

Trade-Ideas LLC identified

Hyperion Therapeutics

(

HPTX

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

  • HPTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.8 million.
  • HPTX has traded 69,001 shares today.
  • HPTX is trading at 6.36 times the normal volume for the stock at this time of day.
  • HPTX is trading at a new high 4.06% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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.

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More details on HPTX:

TheStreet Recommends

Hyperion Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics to treat orphan diseases in the United states, Canada, and internationally. Currently there are 6 analysts that rate Hyperion Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Hyperion Therapeutics has been 247,700 shares per day over the past 30 days. Hyperion has a market cap of $874.8 million and is part of the health care sector and drugs industry. The stock has a beta of 0.66 and a short float of 7.1% with 0.93 days to cover. Shares are up 81.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hyperion 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, solid stock price performance, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • HPTX's very impressive revenue growth greatly exceeded the industry average of 34.7%. Since the same quarter one year prior, revenues leaped by 65.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HPTX's debt-to-equity ratio is very low at 0.14 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 5.00, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 1500.00% and other important driving factors, this stock has surged by 36.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HPTX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 1413.6% when compared to the same quarter one year prior, rising from $0.47 million to $7.10 million.
  • HYPERION THERAPEUTICS INC reported significant earnings per share improvement in the most recent quarter compared to 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, HYPERION THERAPEUTICS INC swung to a loss, reporting -$0.37 versus $0.68 in the prior year. This year, the market expects an improvement in earnings ($0.73 versus -$0.37).

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