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 ViroPharma ( VPHM) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified ViroPharma as such a stock due to the following factors:
- VPHM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.0 million.
- VPHM traded 114,699 shares today in the pre-market hours as of 7:32 AM, representing 13.6% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VPHM with the Ticky from Trade-Ideas. See the FREE profile for VPHM NOW at Trade-Ideas More details on VPHM: ViroPharma Incorporated, a biotechnology company, develops and commercializes therapeutic products that address serious diseases in the United States and internationally. VPHM has a PE ratio of 1284.3. Currently there are 8 analysts that rate ViroPharma a buy, 1 analyst rates it a sell, and 5 rate it a hold. The average volume for ViroPharma has been 1.0 million shares per day over the past 30 days. ViroPharma has a market cap of $2.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.54 and a short float of 28.4% with 12.85 days to cover. Shares are up 69.3% year to date as of the close of trading on Thursday. 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 ViroPharma as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 24.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- VPHM's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- The gross profit margin for VIROPHARMA INC is rather high; currently it is at 67.04%. Regardless of VPHM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VPHM's net profit margin of 3.70% is significantly lower than the industry average.
- VIROPHARMA INC reported significant earnings per share improvement 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, VIROPHARMA INC reported lower earnings of $0.05 versus $1.68 in the prior year. For the next year, the market is expecting a contraction of 1720.0% in earnings (-$0.81 versus $0.05).
- 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 Pharmaceuticals industry and the overall market, VIROPHARMA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full ViroPharma 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.