Revance Therapeutics (RVNC) Is Strong On High Volume Today

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 Revance Therapeutics ( RVNC) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Revance Therapeutics as such a stock due to the following factors:

  • RVNC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.2 million.
  • RVNC has traded 215,024 shares today.
  • RVNC is trading at 44.97 times the normal volume for the stock at this time of day.
  • RVNC is trading at a new high 6.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on RVNC:

Revance Therapeutics, Inc., a clinical-stage specialty biopharmaceutical company, focuses on the development, manufacture, and commercialization of novel botulinum toxin products for various aesthetic and therapeutic indications. Currently there are 3 analysts that rate Revance Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Revance Therapeutics has been 182,700 shares per day over the past 30 days. Revance has a market cap of $619.0 million and is part of the health care sector and drugs industry. Shares are up 53.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Revance Therapeutics as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • RVNC's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to other companies in the Pharmaceuticals industry and the overall market, REVANCE THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RVNC, with its very weak revenue results, has greatly underperformed against the industry average of 2.1%. Since the same quarter one year prior, revenues plummeted by 52.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • REVANCE THERAPEUTICS INC has improved earnings per share by 46.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, REVANCE THERAPEUTICS INC reported poor results of -$3.10 versus -$0.57 in the prior year. For the next year, the market is expecting a contraction of 5.5% in earnings (-$3.27 versus -$3.10).
  • RVNC has underperformed the S&P 500 Index, declining 20.39% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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