Trade-Ideas LLC identified

ISIS Pharmaceuticals

(

ISIS

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

  • ISIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $82.0 million.
  • ISIS has traded 162,393 shares today.
  • ISIS is trading at 2.21 times the normal volume for the stock at this time of day.
  • ISIS is trading at a new high 4.01% 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 ISIS:

TheStreet Recommends

Isis Pharmaceuticals, Inc. engages in the discovery and development of antisense drugs using novel drug discovery platform. ISIS has a PE ratio of 24. Currently there are 2 analysts that rate ISIS Pharmaceuticals a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for ISIS Pharmaceuticals has been 1.8 million shares per day over the past 30 days. ISIS has a market cap of $5.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.41 and a short float of 15.9% with 8.87 days to cover. Shares are down 26.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ISIS Pharmaceuticals as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. 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:

  • ISIS's very impressive revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues leaped by 111.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 395.1% when compared to the same quarter one year prior, rising from -$12.08 million to $35.65 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • 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. In comparison to the other companies in the Biotechnology industry and the overall market, ISIS PHARMACEUTICALS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The debt-to-equity ratio of 1.32 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 8.02, which shows the ability to cover short-term cash needs.

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