- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen 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 ($2.38 versus $1.39).
- GRFS's revenue growth trails the industry average of 43.1%. 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 Drugs industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.6%. Laggards within the Drugs industry included XTL Biopharmaceuticals ( XTLB), down 2.2%, Tianyin Pharmaceutical ( TPI), down 6.4%, Cyanotech ( CYAN), down 2.3%, Cellectar Biosciences ( CLRB), down 4.3% and Novogen ( NVGN), down 4.1%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Grifols ( GRFS) is one of the companies that pushed the Drugs industry lower today. Grifols was down $1.56 (4.2%) to $35.32 on average volume. Throughout the day, 737,953 shares of Grifols exchanged hands as compared to its average daily volume of 701,400 shares. The stock ranged in price between $35.26-$36.38 after having opened the day at $36.37 as compared to the previous trading day's close of $36.88. 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 $12.8 billion and is part of the health care sector. Shares are up 2.1% year-to-date as of the close of trading on Monday. 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, increase in stock price during the past year 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: