Trade-Ideas LLC identified

ZIOPHARM Oncology

(

ZIOP

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

  • ZIOP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.3 million.
  • ZIOP has traded 63,878 shares today.
  • ZIOP is down 5.4% today.
  • ZIOP was up 13.9% yesterday.

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More details on ZIOP:

ZIOPHARM Oncology, Inc., a biotechnology company, employs gene expression, control, and cell technologies to deliver cell-based therapies for the treatment of cancer. Currently there is 1 analyst that rates ZIOPHARM Oncology a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for ZIOPHARM Oncology has been 3.2 million shares per day over the past 30 days. ZIOPHARM Oncology has a market cap of $672.8 million and is part of the health care sector and drugs industry. The stock has a beta of 2.46 and a short float of 34.6% with 13.94 days to cover. Shares are down 41% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ZIOPHARM Oncology as a

sell

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

Highlights from the ratings report include:

  • 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 198.2% when compared to the same quarter one year ago, falling from -$6.09 million to -$18.17 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ZIOPHARM ONCOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 36.87%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 133.33% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • ZIOPHARM ONCOLOGY 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ZIOPHARM ONCOLOGY INC continued to lose money by earning -$0.32 versus -$0.66 in the prior year. For the next year, the market is expecting a contraction of 25.0% in earnings (-$0.40 versus -$0.32).
  • Net operating cash flow has significantly increased by 530.87% to $45.20 million when compared to the same quarter last year. In addition, ZIOPHARM ONCOLOGY INC has also vastly surpassed the industry average cash flow growth rate of -36.71%.

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