Trade-Ideas LLC identified

Insys Therapeutics

(

INSY

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Insys Therapeutics as such a stock due to the following factors:

  • INSY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.3 million.
  • INSY has traded 86,045 shares today.
  • INSY is down 3.7% today.
  • INSY was up 7.2% yesterday.

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More details on INSY:

Insys Therapeutics, Inc., a specialty pharmaceutical company, develops and commercializes supportive care products. INSY has a PE ratio of 22. Currently there are 2 analysts that rate Insys Therapeutics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Insys Therapeutics has been 904,500 shares per day over the past 30 days. Insys has a market cap of $1.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.86 and a short float of 88.3% with 25.48 days to cover. Shares are down 37.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Insys Therapeutics as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 37.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • INSYS THERAPEUTICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, INSYS THERAPEUTICS INC increased its bottom line by earning $0.77 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.77).
  • The gross profit margin for INSYS THERAPEUTICS INC is currently very high, coming in at 94.51%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, INSY's net profit margin of 18.66% significantly trails the industry average.
  • 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. In comparison to other companies in the Biotechnology industry and the overall market on the basis of return on equity, INSYS THERAPEUTICS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • INSY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 41.60%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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