ZIOPHARM Oncology (ZIOP) Is Strong On High Volume Today

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 ZIOPHARM Oncology ( ZIOP) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified ZIOPHARM Oncology as such a stock due to the following factors:

  • ZIOP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
  • ZIOP has traded 57,120 shares today.
  • ZIOP is trading at 2.14 times the normal volume for the stock at this time of day.
  • ZIOP is trading at a new high 4.25% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on ZIOP:

ZIOPHARM Oncology, Inc., a biopharmaceutical company, focuses on the discovery and development of cancer therapies that address unmet medical needs through synthetic biology. The company is employing novel gene expression and control technology to deliver DNA for the treatment of cancer. Currently there is 1 analyst that rates ZIOPHARM Oncology a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for ZIOPHARM Oncology has been 649,600 shares per day over the past 30 days. ZIOPHARM Oncology has a market cap of $251.9 million and is part of the health care sector and drugs industry. The stock has a beta of 1.60 and a short float of 21.9% with 21.72 days to cover. Shares are down 40.3% 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 ZIOPHARM Oncology as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • ZIOP has underperformed the S&P 500 Index, declining 5.98% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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, ZIOPHARM ONCOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to -$10.49 million or 32.31% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.77%.
  • ZIOP has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.96, which clearly demonstrates the ability to cover short-term cash needs.
  • ZIOPHARM ONCOLOGY INC reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, ZIOPHARM ONCOLOGY INC continued to lose money by earning -$0.66 versus -$1.22 in the prior year. This year, the market expects an improvement in earnings (-$0.42 versus -$0.66).

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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