Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Isis Pharmaceuticals ( ISIS) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Isis Pharmaceuticals as such a stock due to the following factors:
- ISIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.5 million.
- ISIS has traded 947,720 shares today.
- ISIS traded in a range 212.3% of the normal price range with a price range of $2.24.
- ISIS traded above its daily resistance level (quality: 27 days, meaning that the stock is crossing a resistance level set by the last 27 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock s movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher. EXCLUSIVE OFFER: Get the inside scoop on opportunities in ISIS with the Ticky from Trade-Ideas. See the FREE profile for ISIS NOW at Trade-Ideas More details on ISIS: Isis Pharmaceuticals, Inc. engages in the discovery and development of antisense drugs using novel drug discovery platform. Currently there are 4 analysts that rate Isis Pharmaceuticals a buy, 2 analysts rate it a sell, and 1 rates it a hold. The average volume for Isis Pharmaceuticals has been 1.5 million shares per day over the past 30 days. Isis has a market cap of $3.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.63 and a short float of 14.9% with 11.00 days to cover. Shares are up 156.7% year to date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Isis Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive. Highlights from the ratings report include:
- Compared to its closing price of one year ago, ISIS's share price has jumped by 86.80%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The current debt-to-equity ratio, 0.40, 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 7.55, which clearly demonstrates the ability to cover short-term cash needs.
- ISIS PHARMACEUTICALS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, ISIS PHARMACEUTICALS INC continued to lose money by earning -$0.65 versus -$0.85 in the prior year. This year, the market expects an improvement in earnings (-$0.62 versus -$0.65).
- 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, ISIS PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 738.9% when compared to the same quarter one year ago, falling from -$1.21 million to -$10.13 million.
- You can view the full Isis Pharmaceuticals Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.