Strong And Under The Radar: Retrophin (RTRX)

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.

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

  • RTRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.4 million.
  • RTRX is making at least a new 3-day high.
  • RTRX has a PE ratio of 88.
  • RTRX is mentioned 1.48 times per day on StockTwits.
  • RTRX has not yet been mentioned on StockTwits today.
  • RTRX is currently in the upper 20% of its 1-year range.
  • RTRX is in the upper 35% of its 20-day range.
  • RTRX is in the upper 45% of its 5-day range.
  • RTRX 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 RTRX:

Retrophin, Inc., a biopharmaceutical company, focuses on the development, acquisition, and commercialization of therapies for the treatment of serious, catastrophic, or rare diseases. RTRX has a PE ratio of 88. Currently there are 2 analysts that rate Retrophin a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Retrophin has been 597,000 shares per day over the past 30 days. Retrophin has a market cap of $862.1 million and is part of the health care sector and drugs industry. The stock has a beta of 0.42 and a short float of 9.9% with 8.48 days to cover. Shares are up 114.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Retrophin as a sell. The area that we feel has been the company's primary weakness has been its generally higher debt management risk.

Highlights from the ratings report include:
  • Despite currently having a low debt-to-equity ratio of 0.50, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.32 is sturdy.
  • Compared to other companies in the Biotechnology industry and the overall market, RETROPHIN 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 -$7.33 million or 25.21% when compared to the same quarter last year. Despite an increase in cash flow of 25.21%, RETROPHIN INC is still growing at a significantly lower rate than the industry average of 147.25%.
  • RETROPHIN 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, RETROPHIN INC reported poor results of -$6.15 versus -$2.27 in the prior year. This year, the market expects an improvement in earnings (-$0.51 versus -$6.15).
  • 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 152.3% when compared to the same quarter one year prior, rising from -$75.74 million to $39.66 million.

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