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

  • BCRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.6 million.
  • BCRX has traded 120,890 shares today.
  • BCRX is down 7.4% today.
  • BCRX was up 5.4% yesterday.

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More details on BCRX:

BioCryst Pharmaceuticals, Inc., a biotechnology company, designs, optimizes, and develops small molecule pharmaceuticals that block key enzymes involved in the pathogenesis of diseases. Currently there are 7 analysts that rate Biocryst Pharmaceuticals a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Biocryst Pharmaceuticals has been 1.3 million shares per day over the past 30 days. Biocryst has a market cap of $752.0 million and is part of the health care sector and drugs industry. The stock has a beta of 3.29 and a short float of 10.7% with 7.10 days to cover. Shares are up 65% year-to-date as of the close of trading on Friday.

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 Biocryst Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 125.0% when compared to the same quarter one year ago, falling from -$4.51 million to -$10.14 million.
  • BIOCRYST PHARMACEUTICALS INC 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, BIOCRYST PHARMACEUTICALS INC continued to lose money by earning -$0.55 versus -$0.79 in the prior year. For the next year, the market is expecting a contraction of 35.5% in earnings (-$0.75 versus -$0.55).
  • The revenue fell significantly faster than the industry average of 36.5%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Net operating cash flow has increased to -$8.96 million or 19.99% when compared to the same quarter last year. In addition, BIOCRYST PHARMACEUTICALS INC has also vastly surpassed the industry average cash flow growth rate of -47.73%.
  • Compared to its closing price of one year ago, BCRX's share price has jumped by 184.54%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in BCRX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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