Astex Pharmaceuticals Inc Stock Upgraded (ASTX)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Astex Pharmaceuticals (Nasdaq: ASTX) 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, reasonable valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Highlights from the ratings report include:
  • ASTX's very impressive revenue growth greatly exceeded the industry average of 7.4%. Since the same quarter one year prior, revenues leaped by 70.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • ASTX 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 6.75, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, ASTX's share price has jumped by 50.25%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ASTX should continue to move higher despite the fact that it has already enjoyed a very nice gain 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 37.3% when compared to the same quarter one year prior, rising from $0.90 million to $1.24 million.
.

Astex Pharmaceuticals, Inc. engages in the discovery and development of small molecule therapeutics with a focus on oncology and hematology. It develops small molecule therapeutics using its fragment-based drug discovery platform, Pyramid. The company has a P/E ratio of 10.3, below the average drugs industry P/E ratio of 95.7 and below the S&P 500 P/E ratio of 17.7. Astex has a market cap of $267.7 million and is part of the health care sector and drugs industry. Shares are up 3.7% year to date as of the close of trading on Wednesday.

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

-- Written by a member of TheStreet Ratings Staff

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Trade-Ideas: Astex Pharmaceuticals (ASTX) Is Today's Pre-Market Mover With Heavy Volume Stock

Trade-Ideas: Astex Pharmaceuticals (ASTX) Is Today's Pre-Market Mover With Heavy Volume Stock

Biotech Stock Mailbag: Astex Pharma, My Essential Twitter Follows

Biotech Stock Mailbag: Astex Pharma, My Essential Twitter Follows

Trade-Ideas: Astex Pharmaceuticals (ASTX) Is Today's "Perilous Reversal" Stock

Trade-Ideas: Astex Pharmaceuticals (ASTX) Is Today's "Perilous Reversal" Stock

4 Biotech Stocks Under $10 to Trade for Breakouts

4 Biotech Stocks Under $10 to Trade for Breakouts

Astex Pharmaceuticals Inc Stock Downgraded (ASTX)

Astex Pharmaceuticals Inc Stock Downgraded (ASTX)