Stereotaxis (STXS) Is Today's Perilous Reversal 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 Stereotaxis ( STXS) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Stereotaxis as such a stock due to the following factors:

  • STXS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.6 million.
  • STXS has traded 253,175 shares today.
  • STXS is down 4.1% today.
  • STXS was up 42% yesterday.

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More details on STXS:

Stereotaxis, Inc. designs, manufactures, and markets cardiology instrument control system in the United States and internationally.

The average volume for Stereotaxis has been 2.0 million shares per day over the past 30 days. Stereotaxis has a market cap of $46.4 million and is part of the health care sector and health services industry. The stock has a beta of 4.11 and a short float of 34.9% with 0.62 days to cover. Shares are up 24.3% 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 Stereotaxis as a sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

Highlights from the ratings report include:
  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 207.1% when compared to the same quarter one year ago, falling from $2.81 million to -$3.01 million.
  • STEREOTAXIS INC has experienced 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 not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, STEREOTAXIS INC continued to lose money by earning -$1.60 versus -$5.80 in the prior year.
  • Despite the weak revenue results, STXS has outperformed against the industry average of 26.1%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for STEREOTAXIS INC is currently very high, coming in at 77.75%. 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 -30.89% is in-line with the industry average.
  • Net operating cash flow has increased to -$2.14 million or 48.87% when compared to the same quarter last year. In addition, STEREOTAXIS INC has also vastly surpassed the industry average cash flow growth rate of -60.73%.

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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