Questcor Pharmaceuticals Inc. Stock Upgraded (QCOR)

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) -- Questcor Pharmaceuticals (Nasdaq: QCOR) 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, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • QCOR's very impressive revenue growth greatly exceeded the industry average of 7.8%. Since the same quarter one year prior, revenues leaped by 134.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • QCOR 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. To add to this, QCOR has a quick ratio of 2.02, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 Pharmaceuticals industry and the overall market, QUESTCOR PHARMACEUTICALS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for QUESTCOR PHARMACEUTICALS INC is currently very high, coming in at 94.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 39.68% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 57.20% to $51.25 million when compared to the same quarter last year. In addition, QUESTCOR PHARMACEUTICALS INC has also vastly surpassed the industry average cash flow growth rate of -55.00%.
.

Questcor Pharmaceuticals, Inc., a biopharmaceutical company, provides prescription drugs for the treatment of multiple sclerosis, nephrotic syndrome, and infantile spasms indications. It primarily offers H.P. The company has a P/E ratio of 11, below the S&P 500 P/E ratio of 17.7. Questcor has a market cap of $1.67 billion and is part of the health care sector and drugs industry. Shares are up 7.2% year to date as of the close of trading on Wednesday.

You can view the full Questcor 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.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Cramer: Reviewing S&P's Hit-and-Miss Parade

Fifteen Fabulously Intelligent Biotech Stock Predictions for 2015

Greenberg on the Stock Market: Why Investigations No Longer Matter

Retrophin CEO Under Fire for Twitter Faux Pas

Questcor Pharmaceuticals (QCOR) Hits New Lifetime High Today