Stock To Watch: OraSure Technologies (OSUR) In Perilous Reversal

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 OraSure Technologies ( OSUR) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified OraSure Technologies as such a stock due to the following factors:

  • OSUR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.6 million.
  • OSUR has traded 767,514 shares today.
  • OSUR is down 3.8% today.
  • OSUR was up 23.9% yesterday.

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More details on OSUR:

OraSure Technologies, Inc., together with its subsidiaries, develops, manufactures, markets, and sells oral fluid diagnostic products and specimen collection devices in the United States, Europe, and internationally. OSUR has a PE ratio of 275. Currently there are 6 analysts that rate OraSure Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for OraSure Technologies has been 664,900 shares per day over the past 30 days. OraSure has a market cap of $309.7 million and is part of the health care sector and health services industry. The stock has a beta of 1.60 and a short float of 3.6% with 0.76 days to cover. Shares are down 45.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates OraSure Technologies as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • OSUR has underperformed the S&P 500 Index, declining 11.46% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ORASURE TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ORASURE TECHNOLOGIES INC is rather high; currently it is at 67.95%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, OSUR's net profit margin of 0.41% significantly trails the industry average.
  • Net operating cash flow has increased to -$6.59 million or 14.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.82%.
  • ORASURE TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ORASURE TECHNOLOGIES INC continued to lose money by earning -$0.09 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($0.03 versus -$0.09).

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