NEW YORK ( TheStreet) -- Progenics Pharmaceuticals (Nasdaq: PGNX) has been upgraded by TheStreet Ratings from sell to hold. 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 and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Highlights from the ratings report include:
- PGNX's very impressive revenue growth greatly exceeded the industry average of 8.3%. Since the same quarter one year prior, revenues leaped by 3128.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- PGNX 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 13.81, which clearly demonstrates the ability to cover short-term cash needs.
- PROGENICS PHARMACEUTICAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PROGENICS PHARMACEUTICAL INC reported poor results of -$2.14 versus -$0.98 in the prior year. This year, the market expects an improvement in earnings ($0.18 versus -$2.14).
- 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 on the basis of return on equity, PROGENICS PHARMACEUTICAL INC underperformed against that of the industry average and is significantly less than that of the S&P 500.