NEW YORK ( TheStreet) -- Alkermes (Nasdaq: ALKS) 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, solid stock price performance, increase in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
- ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!
- ALKS's very impressive revenue growth greatly exceeded the industry average of 8.1%. Since the same quarter one year prior, revenues leaped by 146.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.21, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 269.4% when compared to the same quarter one year prior, rising from -$13.24 million to $22.43 million.
- Net operating cash flow has significantly increased by 74.26% to -$4.70 million when compared to the same quarter last year. In addition, ALKERMES PLC has also vastly surpassed the industry average cash flow growth rate of -75.38%.
-- Written by a member of TheStreet Ratings Staff