Trade-Ideas: Cubist Pharmaceuticals (CBST) Is Today's New Lifetime High 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 Cubist Pharmaceuticals ( CBST) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cubist Pharmaceuticals as such a stock due to the following factors:

  • CBST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $192.6 million.
  • CBST has traded 212,331 shares today.
  • CBST is trading at a new lifetime high.

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More details on CBST:

Cubist Pharmaceuticals, Inc., a biopharmaceutical company, is engaged in the research, development, and commercialization of pharmaceutical products for medical needs in the acute care environment in the United States. CBST has a PE ratio of 122.9. Currently there is 1 analyst that rates Cubist Pharmaceuticals a buy, 1 analyst rates it a sell, and 11 rate it a hold.

The average volume for Cubist Pharmaceuticals has been 2.3 million shares per day over the past 30 days. Cubist has a market cap of $7.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.56 and a short float of 9.9% with 2.95 days to cover. Shares are up 0.1% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Analysis:

TheStreet Quant Ratings rates Cubist Pharmaceuticals as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 167.3% when compared to the same quarter one year prior, rising from -$33.90 million to $22.83 million.
  • CBST's revenue growth trails the industry average of 41.3%. Since the same quarter one year prior, revenues rose by 16.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 174.27% to $43.25 million when compared to the same quarter last year. In addition, CUBIST PHARMACEUTICALS INC has also vastly surpassed the industry average cash flow growth rate of 117.49%.
  • Powered by its strong earnings growth of 158.00% and other important driving factors, this stock has surged by 45.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • CUBIST PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CUBIST PHARMACEUTICALS INC swung to a loss, reporting -$0.26 versus $2.09 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus -$0.26).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.