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

Biocryst Pharmaceuticals

(

BCRX

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

  • BCRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.5 million.
  • BCRX has traded 52,631 shares today.
  • BCRX is down 4.1% today.
  • BCRX was up 10.6% yesterday.

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More details on BCRX:

BioCryst Pharmaceuticals, Inc., a biotechnology company, designs, optimizes, and develops small molecule drugs that block key enzymes involved in the pathogenesis of diseases. Currently there are 5 analysts that rate Biocryst Pharmaceuticals a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Biocryst Pharmaceuticals has been 900,800 shares per day over the past 30 days. Biocryst has a market cap of $653.1 million and is part of the health care sector and drugs industry. Shares are down 17.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Biocryst Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • BIOCRYST PHARMACEUTICALS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BIOCRYST PHARMACEUTICALS INC reported poor results of -$0.68 versus -$0.55 in the prior year. For the next year, the market is expecting a contraction of 58.1% in earnings (-$1.08 versus -$0.68).
  • 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 Biotechnology industry. The net income has significantly decreased by 115.0% when compared to the same quarter one year ago, falling from -$5.43 million to -$11.67 million.
  • Net operating cash flow has significantly decreased to -$13.89 million or 207.64% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of BIOCRYST PHARMACEUTICALS INC has not done very well: it is down 20.10% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The revenue fell significantly faster than the industry average of 36.0%. Since the same quarter one year prior, revenues fell by 48.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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