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 Insulet Corporation ( PODD) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Insulet Corporation as such a stock due to the following factors:
- PODD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.8 million.
- PODD has traded 444,280 shares today.
- PODD is down 3.7% today.
- PODD was up 6.6% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in PODD with the Ticky from Trade-Ideas. See the FREE profile for PODD NOW at Trade-Ideas More details on PODD: Insulet Corporation, a medical device company, engages in the development, manufacture, and sale of insulin infusion systems for people with insulin-dependent diabetes in the United States. Currently there are 8 analysts that rate Insulet Corporation a buy, 1 analyst rates it a sell, and 3 rate it a hold. The average volume for Insulet Corporation has been 316,200 shares per day over the past 30 days. Insulet has a market cap of $1.9 billion and is part of the health care sector and health services industry. The stock has a beta of 1.15 and a short float of 17.1% with 15.97 days to cover. Shares are up 68.5% 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 Insulet Corporation as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity. Highlights from the ratings report include:
- 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 Health Care Equipment & Supplies industry and the overall market, INSULET CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- INSULET CORP has improved earnings per share by 33.3% in the most recent quarter compared to 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, INSULET CORP reported poor results of -$1.08 versus -$0.98 in the prior year. This year, the market expects an improvement in earnings (-$0.62 versus -$1.08).
- PODD's debt-to-equity ratio of 0.82 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 5.45 is very high and demonstrates very strong liquidity.
- 49.41% is the gross profit margin for INSULET CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -17.50% is in-line with the industry average.
- Net operating cash flow has significantly increased by 139.33% to $4.37 million when compared to the same quarter last year. In addition, INSULET CORP has also vastly surpassed the industry average cash flow growth rate of -37.43%.
- You can view the full Insulet Corporation 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.