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 Biocryst Pharmaceuticals ( BCRX) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Biocryst Pharmaceuticals as such a stock due to the following factors:

  • BCRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.4 million.
  • BCRX has traded 53,316 shares today.
  • BCRX is up 4.7% today.
  • BCRX was down 6.9% yesterday.

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More details on BCRX:

BioCryst Pharmaceuticals, Inc., a biotechnology company, designs, optimizes, and develops novel drugs that block key enzymes involved in the pathogenesis of diseases. Currently there are 6 analysts that rate Biocryst Pharmaceuticals a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Biocryst Pharmaceuticals has been 1.3 million shares per day over the past 30 days. Biocryst has a market cap of $758.1 million and is part of the health care sector and drugs industry. The stock has a beta of 3.24 and a short float of 12.3% with 3.43 days to cover. Shares are up 68.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Biocryst Pharmaceuticals as a sell. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

Highlights from the ratings report include:
  • BIOCRYST PHARMACEUTICALS INC 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BIOCRYST PHARMACEUTICALS INC continued to lose money by earning -$0.55 versus -$0.79 in the prior year. For the next year, the market is expecting a contraction of 41.8% in earnings (-$0.78 versus -$0.55).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 50.9% when compared to the same quarter one year prior, rising from -$11.05 million to -$5.43 million.
  • This stock has increased by 900.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in BCRX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • BCRX's very impressive revenue growth greatly exceeded the industry average of 15.1%. Since the same quarter one year prior, revenues leaped by 157.7%. Growth in the company's revenue appears to have helped boost the earnings per share.

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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