Today's Strong And Under The Radar Stock: Impax Laboratories (IPXL)

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 Impax Laboratories ( IPXL) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Impax Laboratories as such a stock due to the following factors:

  • IPXL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.7 million.
  • IPXL is making at least a new 3-day high.
  • IPXL has a PE ratio of 47.8.
  • IPXL is mentioned 1.19 times per day on StockTwits.
  • IPXL has not yet been mentioned on StockTwits today.
  • IPXL is currently in the upper 20% of its 1-year range.
  • IPXL is in the upper 35% of its 20-day range.
  • IPXL is in the upper 45% of its 5-day range.
  • IPXL is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on IPXL:

Impax Laboratories, Inc., a specialty pharmaceutical company, develops, manufactures, and markets bioequivalent pharmaceutical products; and develops and markets branded products. The company operates through two segments, Global Pharmaceuticals Division and Impax Pharmaceutical Division. IPXL has a PE ratio of 47.8. Currently there is 1 analyst that rates Impax Laboratories a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Impax Laboratories has been 675,900 shares per day over the past 30 days. Impax has a market cap of $2.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.82 and a short float of 11.6% with 8.04 days to cover. Shares are up 23.6% year-to-date as of the close of trading on Tuesday.

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 Impax Laboratories as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 19.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IPXL 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 3.50, which clearly demonstrates the ability to cover short-term cash needs.
  • This stock has managed to rise its share value by 27.38% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IPXL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 8842.8% when compared to the same quarter one year prior, rising from -$0.18 million to $15.74 million.
  • Net operating cash flow has significantly increased by 415.27% to $41.52 million when compared to the same quarter last year. In addition, IMPAX LABORATORIES INC has also vastly surpassed the industry average cash flow growth rate of -19.54%.

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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