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 or Stephanie Link.
Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified United Therapeutics as such a stock due to the following factors:
- UTHR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $58.3 million.
- UTHR has traded 278,669 shares today.
- UTHR is down 3% today.
- UTHR was up 8.1% yesterday.
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More details on UTHR:
United Therapeutics Corporation, a biotechnology company, develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening conditions worldwide. UTHR has a PE ratio of 20.1. Currently there are 4 analysts that rate United Therapeutics a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for United Therapeutics has been 705,900 shares per day over the past 30 days. United has a market cap of $4.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.67 and a short float of 16.5% with 8.20 days to cover. Shares are down 13.2% year-to-date as of the close of trading on Tuesday.
rates United Therapeutics as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- 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 120.7% when compared to the same quarter one year prior, rising from $62.33 million to $137.52 million.
- UTHR's revenue growth trails the industry average of 36.6%. Since the same quarter one year prior, revenues rose by 18.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- UTHR's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
- Powered by its strong earnings growth of 104.20% and other important driving factors, this stock has surged by 30.76% 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, UTHR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full United Therapeutics Ratings Report.