Today Salix Pharmaceuticals (SLXP) Hits New Lifetime High

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 Salix Pharmaceuticals ( SLXP) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Salix Pharmaceuticals as such a stock due to the following factors:

  • SLXP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $295.5 million.
  • SLXP has traded 327,332 shares today.
  • SLXP is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SLXP with the Ticky from Trade-Ideas. See the FREE profile for SLXP NOW at Trade-Ideas

More details on SLXP:

Salix Pharmaceuticals, Ltd. acquires, develops, and commercializes prescription drugs and medical devices to treat various gastrointestinal diseases in the United States. SLXP has a PE ratio of 185.8. Currently there are 9 analysts that rate Salix Pharmaceuticals a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Salix Pharmaceuticals has been 1.4 million shares per day over the past 30 days. Salix has a market cap of $10.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.90 and a short float of 17.3% with 4.84 days to cover. Shares are up 82.6% 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 Salix Pharmaceuticals as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • SLXP's very impressive revenue growth greatly exceeded the industry average of 4.7%. Since the same quarter one year prior, revenues leaped by 62.2%. 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.
  • Net operating cash flow has significantly increased by 121.67% to $31.47 million when compared to the same quarter last year. In addition, SALIX PHARMACEUTICALS LTD has also vastly surpassed the industry average cash flow growth rate of -0.95%.
  • Compared to its closing price of one year ago, SLXP's share price has jumped by 133.78%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • SALIX PHARMACEUTICALS LTD 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SALIX PHARMACEUTICALS LTD increased its bottom line by earning $2.14 versus $1.01 in the prior year. This year, the market expects an improvement in earnings ($6.17 versus $2.14).
  • The gross profit margin for SALIX PHARMACEUTICALS LTD is currently very high, coming in at 77.63%. Regardless of SLXP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SLXP's net profit margin of 0.85% is significantly lower than the industry average.

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

null

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists