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 Horizon Pharma ( HZNP) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Horizon Pharma as such a stock due to the following factors:
- HZNP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.3 million.
- HZNP has traded 1.8 million shares today.
- HZNP is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HZNP with the Ticky from Trade-Ideas. See the FREE profile for HZNP NOW at Trade-Ideas More details on HZNP: Horizon Pharma, Inc., a specialty pharmaceutical company, through its subsidiaries, develops and commercializes medicines for the treatment of arthritis, pain, and inflammatory diseases. Currently there are 4 analysts that rate Horizon Pharma a buy, no analysts rate it a sell, and none rate it a hold. The average volume for Horizon Pharma has been 1.9 million shares per day over the past 30 days. Horizon has a market cap of $890.7 million and is part of the health care sector and drugs industry. The stock has a beta of 2.14 and a short float of 33.5% with 5.88 days to cover. Shares are up 82.3% year-to-date as of the close of trading on Monday. 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 Horizon Pharma 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 company's return on equity has been disappointing. Highlights from the ratings report include:
- HZNP's very impressive revenue growth greatly exceeded the industry average of 1.5%. Since the same quarter one year prior, revenues leaped by 302.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, HZNP has a quick ratio of 1.67, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for HORIZON PHARMA INC is currently very high, coming in at 87.30%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -20.94% is in-line with the industry average.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, HORIZON PHARMA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Horizon Pharma 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.