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 Isis Pharmaceuticals ( ISIS) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Isis Pharmaceuticals as such a stock due to the following factors:
- ISIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.0 million.
- ISIS has traded 53,597 shares today.
- ISIS is down 3.2% today.
- ISIS was up 5.5% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ISIS with the Ticky from Trade-Ideas. See the FREE profile for ISIS NOW at Trade-Ideas More details on ISIS: Isis Pharmaceuticals, Inc. is engaged in the discovery and development of antisense drugs using novel drug discovery platform. Currently there are 4 analysts that rate Isis Pharmaceuticals a buy, 1 analyst rates it a sell, and 3 rate it a hold. The average volume for Isis Pharmaceuticals has been 2.0 million shares per day over the past 30 days. Isis has a market cap of $4.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.58 and a short float of 14.6% with 6.14 days to cover. Shares are down 7.1% year-to-date as of the close of trading on Tuesday. 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 Isis Pharmaceuticals 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 also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share. Highlights from the ratings report include:
- ISIS's very impressive revenue growth greatly exceeded the industry average of 15.4%. Since the same quarter one year prior, revenues leaped by 112.6%. 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.
- The current debt-to-equity ratio, 0.43, 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 7.37, which clearly demonstrates the ability to cover short-term cash needs.
- 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 820.6% when compared to the same quarter one year ago, falling from -$2.64 million to -$24.28 million.
- Net operating cash flow has significantly decreased to -$14.49 million or 140.21% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Isis Pharmaceuticals 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.