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 Amicus Therapeutics ( FOLD) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Amicus Therapeutics as such a stock due to the following factors:
- FOLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.4 million.
- FOLD has traded 496,390 shares today.
- FOLD is down 3% today.
- FOLD was up 19.5% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in FOLD with the Ticky from Trade-Ideas. See the FREE profile for FOLD NOW at Trade-Ideas More details on FOLD: Amicus Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for various rare and orphan diseases. Currently there are no analysts that rate Amicus Therapeutics a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Amicus Therapeutics has been 1.2 million shares per day over the past 30 days. Amicus has a market cap of $214.9 million and is part of the health care sector and drugs industry. The stock has a beta of 1.82 and a short float of 8.1% with 0.79 days to cover. Shares are up 69.8% 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 Amicus Therapeutics as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity. Highlights from the ratings report include:
- The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Biotechnology industry. The net income increased by 8.7% when compared to the same quarter one year prior, going from -$17.46 million to -$15.94 million.
- Despite currently having a low debt-to-equity ratio of 0.46, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 7.65 is very high and demonstrates very strong liquidity.
- AMICUS THERAPEUTICS INC has improved earnings per share by 28.6% 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, AMICUS THERAPEUTICS INC reported poor results of -$1.17 versus -$1.09 in the prior year. This year, the market expects an improvement in earnings (-$0.93 versus -$1.17).
- This stock has increased by 36.11% 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 FOLD do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full Amicus 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.