NEW YORK ( TheStreet) -- DUSA Pharmaceuticals (Nasdaq: DUSA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 500.00% and other important driving factors, this stock has surged by 135.83% 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, DUSA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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, DUSA PHARMACEUTICALS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • DUSA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.20, which clearly demonstrates the ability to cover short-term cash needs.
  • The revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 36.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

DUSA Pharmaceuticals, Inc., a vertically integrated dermatology company, develops and markets Levulan photodynamic therapy (PDT) and other products for common skin conditions in the United States and internationally. The company has a P/E ratio of 320, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 21.5. DUSA has a market cap of $77.5 million and is part of the health care sector and drugs industry. Shares are up 66.5% year to date as of the close of trading on Thursday.

You can view the full DUSA Ratings Report or get investment ideas from our investment research center.
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