Spectranetics (SPNC) Highlighted As Today's Perilous Reversal Stock

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 Spectranetics ( SPNC) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Spectranetics as such a stock due to the following factors:

  • SPNC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.6 million.
  • SPNC has traded 50,296 shares today.
  • SPNC is down 4.7% today.
  • SPNC was up 6.1% yesterday.

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More details on SPNC:

The Spectranetics Corporation, together with its subsidiaries, develops, manufactures, markets, and distributes single-use medical devices used in minimally invasive procedures in the cardiovascular system. Currently there are 8 analysts that rate Spectranetics a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Spectranetics has been 564,000 shares per day over the past 30 days. Spectranetics has a market cap of $1.0 billion and is part of the health care sector and health services industry. The stock has a beta of 1.13 and a short float of 8% with 9.03 days to cover. Shares are up 6.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Spectranetics as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, SPNC's share price has jumped by 29.01%, exceeding the performance of the broader market during that same time frame. Although SPNC had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 5.1%. 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 gross profit margin for SPECTRANETICS CORP is currently very high, coming in at 78.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -14.29% is in-line with the industry average.
  • SPECTRANETICS CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, SPECTRANETICS CORP swung to a loss, reporting -$0.02 versus $0.07 in the prior year. For the next year, the market is expecting a contraction of 1300.0% in earnings (-$0.28 versus -$0.02).
  • 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 490.3% when compared to the same quarter one year ago, falling from -$0.96 million to -$5.66 million.

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Strong On High Relative Volume: Spectranetics (SPNC)

Strong On High Relative Volume: Spectranetics (SPNC)

Today's Perilous Reversal Stock: Spectranetics (SPNC)

Today's Perilous Reversal Stock: Spectranetics (SPNC)