- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.98% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GRFS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- GRIFOLS SA has improved earnings per share by 17.1% 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. During the past fiscal year, GRIFOLS SA increased its bottom line by earning $1.39 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($2.39 versus $1.39).
- GRFS's revenue growth trails the industry average of 43.5%. Since the same quarter one year prior, revenues rose by 20.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, GRIFOLS SA's return on equity exceeds that of both the industry average and the S&P 500.
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. The Health Care sector as a whole closed the day down 1.6% versus the S&P 500, which was down 0.1%. Laggards within the Health Care sector included Aoxing Pharmaceutical ( AXN), down 2.6%, XTL Biopharmaceuticals ( XTLB), down 6.1%, Bio-Rad Laboratories ( BIO.B), down 2.1%, Escalon Medical ( ESMC), down 2.5% and ImmuCell ( ICCC), down 5.7%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: Grifols ( GRFS) is one of the companies that pushed the Health Care sector lower today. Grifols was down $0.88 (2.3%) to $36.87 on average volume. Throughout the day, 544,049 shares of Grifols exchanged hands as compared to its average daily volume of 689,200 shares. The stock ranged in price between $36.38-$37.68 after having opened the day at $37.68 as compared to the previous trading day's close of $37.75. Grifols, S.A., a specialty biopharmaceutical company, develops, manufactures, and distributes a range of plasma derivative products primarily in the European Union, Spain, the United States, Canada, and internationally. Grifols has a market cap of $13.1 billion and is part of the drugs industry. Shares are up 4.5% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who rate Grifols a buy, no analysts rate it a sell, and none rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Grifols as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from TheStreet Ratings analysis on GRFS go as follows: