Trade-Ideas: Jazz Pharmaceuticals (JAZZ) Is Today's Post-Market Laggard 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 Jazz Pharmaceuticals ( JAZZ) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Jazz Pharmaceuticals as such a stock due to the following factors:

  • JAZZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $174.1 million.
  • JAZZ is down 4.5% today from today's close.

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More details on JAZZ:

Jazz Pharmaceuticals Public Limited Company, a specialty biopharmaceutical company, engages in the identification, development, and commercialization of pharmaceutical products for various medical needs in the United States, Europe, and other countries. JAZZ has a PE ratio of 31.7. Currently there are 11 analysts that rate Jazz Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Jazz Pharmaceuticals has been 899,900 shares per day over the past 30 days. Jazz has a market cap of $9.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.16 and a short float of 3.7% with 1.87 days to cover. Shares are up 35.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Jazz Pharmaceuticals as a buy. 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, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

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 32.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.44, 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 3.45, which clearly demonstrates the ability to cover short-term cash needs.
  • 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 Pharmaceuticals industry and the overall market, JAZZ PHARMACEUTICALS PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 119.64% and other important driving factors, this stock has surged by 195.28% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JAZZ should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • JAZZ PHARMACEUTICALS PLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JAZZ PHARMACEUTICALS PLC increased its bottom line by earning $4.30 versus $2.67 in the prior year. This year, the market expects an improvement in earnings ($6.37 versus $4.30).

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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