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 Vertex Pharmaceuticals ( VRTX) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Vertex Pharmaceuticals as such a stock due to the following factors:
- VRTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $113.1 million.
- VRTX is up 4% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VRTX with the Ticky from Trade-Ideas. See the FREE profile for VRTX NOW at Trade-Ideas More details on VRTX: Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for patients with serious diseases. Currently there are 12 analysts that rate Vertex Pharmaceuticals a buy, no analysts rate it a sell, and 7 rate it a hold. The average volume for Vertex Pharmaceuticals has been 1.5 million shares per day over the past 30 days. Vertex has a market cap of $19.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.09 and a short float of 1.6% with 2.56 days to cover. Shares are up 94.1% 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 Vertex Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share. Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, VERTEX PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$0.93 million or 100.78% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- VERTEX PHARMACEUTICALS INC has improved earnings per share by 16.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, VERTEX PHARMACEUTICALS INC swung to a loss, reporting -$0.50 versus $0.04 in the prior year. For the next year, the market is expecting a contraction of 382.0% in earnings (-$2.41 versus -$0.50).
- The revenue fell significantly faster than the industry average of 9.4%. Since the same quarter one year prior, revenues fell by 25.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The current debt-to-equity ratio, 0.30, 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 4.33, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full Vertex 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.