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NEW YORK (TheStreet) -- Five Prime Therapeutics (FPRX) has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIVE PRIME THERAPEUTICS INC (FPRX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FPRX's very impressive revenue growth greatly exceeded the industry average of 41.5%. Since the same quarter one year prior, revenues leaped by 74.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 26.66% and other important driving factors, this stock has surged by 63.15% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Compared to other companies in the Biotechnology industry and the overall market, FIVE PRIME THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- FIVE PRIME THERAPEUTICS INC has improved earnings per share by 26.7% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 18.0% in earnings (-$1.57 versus -$1.33).
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income increased by 2.0% when compared to the same quarter one year prior, going from -$7.23 million to -$7.09 million.
- You can view the full analysis from the report here: FPRX Ratings Report