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

Cepheid

(

CPHD

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cepheid as such a stock due to the following factors:

  • CPHD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.7 million.
  • CPHD has traded 54,525 shares today.
  • CPHD is up 5.1% today.
  • CPHD was down 5.5% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CPHD with the Ticky from Trade-Ideas. See the FREE profile for CPHD NOW at Trade-Ideas

More details on CPHD:

Cepheid, a molecular diagnostics company, develops, manufactures, and markets integrated systems for testing in the clinical market and non-clinical markets. Its systems enable molecular testing for organisms and genetic-based diseases by automating manual laboratory procedures. Currently there are 12 analysts that rate Cepheid a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Cepheid has been 490,700 shares per day over the past 30 days. Cepheid has a market cap of $4.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.47 and a short float of 9.7% with 4.93 days to cover. Shares are up 15.5% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cepheid as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, CPHD's share price has jumped by 51.45%, exceeding the performance of the broader market during that same time frame. 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.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 22.0%. Since the same quarter one year prior, revenues rose by 13.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CPHD's debt-to-equity ratio of 0.76 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.66 is very high and demonstrates very strong liquidity.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, CEPHEID INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $7.19 million or 13.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.