Trade-Ideas LLC identified Thoratec ( THOR) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Thoratec as such a stock due to the following factors:

  • THOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.3 million.
  • THOR traded 466,532 shares today in the pre-market hours as of 7:54 AM, representing 37.6% of its average daily volume.

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More details on THOR:

Thoratec Corporation, together with its subsidiaries, develops, manufactures, and markets proprietary medical devices used for mechanical circulatory support for the treatment of heart failure patients. THOR has a PE ratio of 88. Currently there are no analysts that rate Thoratec a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Thoratec has been 1.2 million shares per day over the past 30 days. Thoratec has a market cap of $3.4 billion and is part of the health care sector and health services industry. The stock has a beta of 0.20 and a short float of 4.5% with 1.50 days to cover. Shares are up 92.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Thoratec as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and deteriorating net income.

Highlights from the ratings report include:
  • THOR's revenue growth trails the industry average of 30.4%. Since the same quarter one year prior, revenues slightly increased by 9.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • THOR 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 4.42, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, THOR's share price has jumped by 155.18%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Health Care Equipment & Supplies industry and the overall market, THORATEC CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has declined marginally to $21.34 million or 8.82% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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