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

Exact Sciences Corporation

(

EXAS

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

  • EXAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.4 million.
  • EXAS has traded 53,189 shares today.
  • EXAS is up 4.7% today.
  • EXAS was down 6.5% yesterday.

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More details on EXAS:

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing diagnostic screening products for the early detection and prevention of colorectal pre-cancer and cancer. Currently there are 6 analysts that rate Exact Sciences Corporation a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Exact Sciences Corporation has been 1.3 million shares per day over the past 30 days. Exact Sciences has a market cap of $979.0 million and is part of the health care sector and drugs industry. The stock has a beta of 1.14 and a short float of 30.2% with 5.69 days to cover. Shares are up 17% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Exact Sciences Corporation as a

sell

. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

Highlights from the ratings report include:

  • 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. Compared to other companies in the Biotechnology industry and the overall market, EXACT SCIENCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • EXACT SCIENCES CORP has improved earnings per share by 22.7% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, EXACT SCIENCES CORP continued to lose money by earning -$0.69 versus -$0.88 in the prior year. For the next year, the market is expecting a contraction of 7.2% in earnings (-$0.74 versus -$0.69).
  • Along with the stagnant revenue growth, the company underperformed against the industry average of 14.9%. Since the same quarter one year prior, revenues have remained constant. The stagnant revenue growth has not kept the company from increasing earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income increased by 12.9% when compared to the same quarter one year prior, going from -$13.99 million to -$12.19 million.
  • Net operating cash flow has slightly increased to -$9.59 million or 7.47% when compared to the same quarter last year. Despite an increase in cash flow of 7.47%, EXACT SCIENCES CORP is still growing at a significantly lower rate than the industry average of 64.51%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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