Trade-Ideas: Seattle Genetics (SGEN) Is Today's New Lifetime High Stock

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 Seattle Genetics ( SGEN) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Seattle Genetics as such a stock due to the following factors:

  • SGEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.8 million.
  • SGEN has traded 843,921 shares today.
  • SGEN is trading at a new lifetime high.

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More details on SGEN:

Seattle Genetics, Inc., a biotechnology company, focuses on the development and commercialization of monoclonal antibody-based therapies for cancer. Its product candidate, ADCETRIS, has accelerated approval form the U.S. Currently there are 3 analysts that rate Seattle Genetics a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for Seattle Genetics has been 994,000 shares per day over the past 30 days. Seattle has a market cap of $5.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.62 and a short float of 19.2% with 27.25 days to cover. Shares are up 90.7% year to date as of the close of trading on Friday.

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 Seattle Genetics as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$7.31 million or 155.10% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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, SEATTLE GENETICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SEATTLE GENETICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SEATTLE GENETICS INC continued to lose money by earning -$0.47 versus -$1.34 in the prior year. For the next year, the market is expecting a contraction of 38.3% in earnings (-$0.65 versus -$0.47).
  • 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 60.0% when compared to the same quarter one year prior, rising from -$17.24 million to -$6.90 million.
  • This stock has increased by 53.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in SGEN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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