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 Furiex Pharmaceuticals ( FURX) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Furiex Pharmaceuticals as such a stock due to the following factors:
- FURX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.5 million.
- FURX traded 29,433 shares today in the pre-market hours as of 7:49 AM, representing 15.7% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in FURX with the Ticky from Trade-Ideas. See the FREE profile for FURX NOW at Trade-Ideas More details on FURX: Furiex Pharmaceuticals, Inc. operates as a drug development company that is involved in compound development and collaboration activities primarily in the United States. Currently there are 2 analysts that rate Furiex Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold. The average volume for Furiex Pharmaceuticals has been 345,800 shares per day over the past 30 days. Furiex has a market cap of $877.3 million and is part of the health care sector and drugs industry. The stock has a beta of 1.51 and a short float of 8.7% with 3.25 days to cover. Shares are up 99.1% 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 Furiex Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk. Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, FURIEX PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio is very high at 3.09 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, FURX has managed to keep a strong quick ratio of 1.63, which demonstrates the ability to cover short-term cash needs.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Life Sciences Tools & Services industry average. The net income increased by 28.2% when compared to the same quarter one year prior, rising from -$9.05 million to -$6.50 million.
- This stock has increased by 152.33% 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 FURX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- FURIEX PHARMACEUTICALS INC has improved earnings per share by 30.0% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, FURIEX PHARMACEUTICALS INC continued to lose money by earning -$2.98 versus -$4.30 in the prior year. This year, the market expects an improvement in earnings (-$2.01 versus -$2.98).
- You can view the full Furiex 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.