BioSpecifics Technologies (BSTC) Highlighted As Strong And Under The Radar Stock Of The Day

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

  • BSTC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • BSTC is making at least a new 3-day high.
  • BSTC has a PE ratio of 53.
  • BSTC is mentioned 1.45 times per day on StockTwits.
  • BSTC has not yet been mentioned on StockTwits today.
  • BSTC is currently in the upper 20% of its 1-year range.
  • BSTC is in the upper 35% of its 20-day range.
  • BSTC is in the upper 45% of its 5-day range.
  • BSTC 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 BSTC:

BioSpecifics Technologies Corp., a biopharmaceutical company, engages in the development of an injectable collagenase clostridium histolyticum for multiple indications in the United States. BSTC has a PE ratio of 53.

The average volume for BioSpecifics Technologies has been 36,600 shares per day over the past 30 days. BioSpecifics has a market cap of $313.7 million and is part of the health care sector and drugs industry. The stock has a beta of 0.61 and a short float of 2.8% with 1.61 days to cover. Shares are up 19.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BioSpecifics Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • BSTC's very impressive revenue growth greatly exceeded the industry average of 21.5%. Since the same quarter one year prior, revenues leaped by 103.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BSTC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 30.78, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 190.90% and other important driving factors, this stock has surged by 73.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BSTC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for BIOSPECIFICS TECHNOLOGIES CP is rather high; currently it is at 66.66%. It has increased significantly from the same period last year. Along with this, the net profit margin of 41.58% is above that of the industry average.
  • 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 209.2% when compared to the same quarter one year prior, rising from $0.75 million to $2.33 million.

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