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

  • ACOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
  • ACOR is making at least a new 3-day high.
  • ACOR has a PE ratio of 73.4.
  • ACOR is mentioned 1.97 times per day on StockTwits.
  • ACOR has not yet been mentioned on StockTwits today.
  • ACOR is currently in the upper 20% of its 1-year range.
  • ACOR is in the upper 35% of its 20-day range.
  • ACOR is in the upper 45% of its 5-day range.
  • ACOR 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 ACOR:

Acorda Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and commercializes novel therapies for multiple sclerosis (MS), spinal cord injury (SCI), and other disorders of the nervous system in the United States. ACOR has a PE ratio of 73.4. Currently there are 2 analysts that rate Acorda Therapeutics a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Acorda Therapeutics has been 503,200 shares per day over the past 30 days. Acorda has a market cap of $1.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.95 and a short float of 17.6% with 15.39 days to cover. Shares are down 1.8% 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 Acorda Therapeutics as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, robust revenue growth, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 59.8% when compared to the same quarter one year prior, rising from $7.48 million to $11.95 million.
  • ACOR's revenue growth trails the industry average of 39.0%. Since the same quarter one year prior, revenues rose by 24.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for ACORDA THERAPEUTICS INC is currently very high, coming in at 82.08%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ACOR's net profit margin of 11.27% significantly trails the industry average.
  • Net operating cash flow has significantly increased by 97.61% to $38.42 million when compared to the same quarter last year. Despite an increase in cash flow, ACORDA THERAPEUTICS INC's cash flow growth rate is still lower than the industry average growth rate of 111.30%.
  • Powered by its strong earnings growth of 55.55% and other important driving factors, this stock has surged by 32.76% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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