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

ISIS Pharmaceuticals

(

ISIS

) as a pre-market leader 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 $230.8 million.
  • ISIS traded 10,427 shares today in the pre-market hours as of 8:27 AM.
  • ISIS is up 3.1% today from yesterday's close.

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More details on ISIS:

Isis Pharmaceuticals, Inc. engages in the discovery and development of antisense drugs using novel drug discovery platform. 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 3.2 million shares per day over the past 30 days. ISIS has a market cap of $7.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.09 and a short float of 16.5% with 4.69 days to cover. Shares are down 1% year-to-date as of the close of trading on Thursday.

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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, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • ISIS's very impressive revenue growth greatly exceeded the industry average of 36.0%. Since the same quarter one year prior, revenues leaped by 100.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 219.04% and other important driving factors, this stock has surged by 45.35% 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.
  • ISIS PHARMACEUTICALS 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ISIS PHARMACEUTICALS INC continued to lose money by earning -$0.35 versus -$0.53 in the prior year. For the next year, the market is expecting a contraction of 134.3% in earnings (-$0.82 versus -$0.35).
  • The gross profit margin for ISIS PHARMACEUTICALS INC is currently extremely low, coming in at 12.52%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, ISIS's net profit margin of 36.59% compares favorably to the industry average.
  • The debt-to-equity ratio of 1.50 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 7.06, which shows the ability to cover short-term cash needs.

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