Trade-Ideas: Regulus Therapeutics (RGLS) Is Today's Post-Market Leader 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 Regulus Therapeutics ( RGLS) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Regulus Therapeutics as such a stock due to the following factors:

  • RGLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.9 million.
  • RGLS is up 2.4% today from today's close.

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More details on RGLS:

Regulus Therapeutics Inc., a biopharmaceutical company, focuses on the discovery and development of drugs that target microRNAs for the treatment of various diseases in the United States. Currently there are 3 analysts that rate Regulus Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Regulus Therapeutics has been 1.2 million shares per day over the past 30 days. Regulus has a market cap of $823.6 million and is part of the health care sector and drugs industry. The stock has a beta of 1.79 and a short float of 10.9% with 0.36 days to cover. Shares are up 166% year-to-date as of the close of trading on Thursday.

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 Regulus Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • REGULUS THERAPEUTICS INC's earnings per share declined by 45.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, REGULUS THERAPEUTICS INC reported poor results of -$0.58 versus -$0.37 in the prior year. For the next year, the market is expecting a contraction of 89.7% in earnings (-$1.10 versus -$0.58).
  • 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 62.9% when compared to the same quarter one year ago, falling from -$7.35 million to -$11.97 million.
  • Net operating cash flow has decreased to -$10.02 million or 34.84% when compared to the same quarter last year. Despite a decrease in cash flow REGULUS THERAPEUTICS INC is still fairing well by exceeding its industry average cash flow growth rate of -49.44%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, REGULUS THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RGLS, with its very weak revenue results, has greatly underperformed against the industry average of 41.2%. Since the same quarter one year prior, revenues plummeted by 84.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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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