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 Acorda Therapeutics ( ACOR) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Acorda Therapeutics as such a stock due to the following factors:
- ACOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.5 million.
- ACOR has traded 261,986 shares today.
- ACOR is down 3% today.
- ACOR was up 7.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ACOR with the Ticky from Trade-Ideas. See the FREE profile for ACOR NOW at Trade-Ideas More details on ACOR: Acorda Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and commercializes novel therapies for multiple sclerosis (MS), spinal cord injury (SCI), and other disorders of the nervous system in the United States. ACOR has a PE ratio of 69.8. Currently there are 4 analysts that rate Acorda Therapeutics a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Acorda Therapeutics has been 526,800 shares per day over the past 30 days. Acorda has a market cap of $1.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.78 and a short float of 9.5% with 3.60 days to cover. Shares are up 18.5% year-to-date as of the close of trading on Wednesday. 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 Acorda Therapeutics as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- 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 161.7% when compared to the same quarter one year prior, rising from -$1.14 million to $0.70 million.
- ACOR's revenue growth trails the industry average of 25.1%. Since the same quarter one year prior, revenues rose by 12.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ACOR's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.17, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 156.23% to $4.31 million when compared to the same quarter last year. In addition, ACORDA THERAPEUTICS INC has also vastly surpassed the industry average cash flow growth rate of 16.34%.
- ACORDA THERAPEUTICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ACORDA THERAPEUTICS INC reported lower earnings of $0.39 versus $3.81 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.39).
- You can view the full Acorda Therapeutics 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.