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 Cepheid ( CPHD) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cepheid as such a stock due to the following factors:
- CPHD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.8 million.
- CPHD has traded 56,903 shares today.
- CPHD is down 4.5% today.
- CPHD was up 11.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CPHD with the Ticky from Trade-Ideas. See the FREE profile for CPHD NOW at Trade-Ideas More details on CPHD: Cepheid, a molecular diagnostics company, develops, manufactures, and markets integrated systems for testing in the clinical market; and for application in legacy non-clinical market. Currently there are 9 analysts that rate Cepheid a buy, 1 analyst rates it a sell, and 8 rate it a hold. The average volume for Cepheid has been 505,800 shares per day over the past 30 days. Cepheid has a market cap of $3.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.50 and a short float of 19.9% with 12.61 days to cover. Shares are down 0.2% 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 Cepheid as a hold. The company's strengths can be seen in multiple areas, such as its robust 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 find that the growth in the company's net income has been quite unimpressive. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 22.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- CPHD's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.33, which illustrates the ability to avoid short-term cash problems.
- CEPHEID 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 reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CEPHEID INC continued to lose money by earning -$0.27 versus -$0.30 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.27).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, CEPHEID INC's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 Biotechnology industry. The net income has significantly decreased by 282.8% when compared to the same quarter one year ago, falling from $5.64 million to -$10.32 million.
- You can view the full Cepheid 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.