10 Worst NASDAQ Biotech Stocks in the Third Quarter

NEW YORK (TheStreet) -- Up until last quarter, the biotech sector has been one of the best performing this year. But the third quarter as a disaster.

The Nasdaq Biotech Index is down -18% over the last quarter; it had been up a whopping 21.6% for the first half of the year. By comparison, the Nasdaq had been up 5.3% in the first half and has been down -7.35% in the third quarter. It was the worst quarter for the broader markets in four years.

The biotech sector, as measured by the Nasdaq Biotechnology Industry Index, declined by -18%.

Many in the biotech sector have attributed much of the downfall to a Tweet from Democratic Presidential candidate Hillary Clinton: "Price gouging like this in the specialty drug market is outrageous. Tomorrow I'll lay out a plan to take it on. -H"

Marketwatch called it a "$132 billion Tweet" and pointed out that the dip the sector has seen this quarter may be a good opportunity to buy.

So, which stocks sunk the most in the aftermath? Here are the 10 stocks in the biotech sector which had the worst third-quarter. 

TheStreet
paired each of these tickers with TheStreet Ratings to let you know if you should buy, sell, or hold these best performing stocks. (Note: Because of TheStreet Ratings parameters, not all stocks on this list have a rating).

TheStreet Ratings, TheStreet's proprietary ratings tool, projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

Check out which stocks were among the best performers to date, counting down from 10 to one.


OREX Chart OREX data by YCharts
10. Orexigen Therapeutics, Inc. (OREX)

Rating: Sell, D-
Market Cap: $257.7 million
Year-to-date return: 57.4%

Orexigen Therapeutics, Inc., a biopharmaceutical company, focuses on the development of pharmaceutical products in the United States. The company offers Contrave for the treatment of obesity.

TheStreet Ratings team rates OREXIGEN THERAPEUTICS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

We rate OREXIGEN THERAPEUTICS INC (OREX) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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 analysis by TheStreet Ratings Team goes as follows:

  • OREX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 51.31%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • OREXIGEN THERAPEUTICS INC has improved earnings per share by 14.3% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, OREXIGEN THERAPEUTICS INC continued to lose money by earning -$0.35 versus -$0.80 in the prior year. For the next year, the market is expecting a contraction of 88.6% in earnings (-$0.66 versus -$0.35).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 8.2% when compared to the same quarter one year prior, going from -$24.51 million to -$22.50 million.
  • Net operating cash flow has increased to -$14.53 million or 33.70% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 14.48%.
  • OREX's very impressive revenue growth greatly exceeded the industry average of 8.9%. Since the same quarter one year prior, revenues leaped by 506.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • You can view the full analysis from the report here: OREX
Must Read: 21 A+ Rated Mid-Cap Stocks Offering High Total Return

IMMU Chart IMMU data by YCharts
9. Immunomedics, Inc. (IMMU)
Rating: Sell, D
Market Cap: $163.2 million
Year-to-date return: 57.6%

Immunomedics, Inc., a clinical-stage biopharmaceutical company, focuses on the development of monoclonal antibody-based products for the targeted treatment of cancer, autoimmune, and other diseases.

TheStreet Ratings team rates IMMUNOMEDICS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate IMMUNOMEDICS INC (IMMU) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and deteriorating net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • IMMU's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 49.02%, which is also worse than the performance of the S&P 500 Index. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income has decreased by 4.7% when compared to the same quarter one year ago, dropping from -$11.85 million to -$12.40 million.
  • IMMUNOMEDICS INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, IMMUNOMEDICS INC reported poor results of -$0.51 versus -$0.41 in the prior year. This year, the market expects an improvement in earnings (-$0.33 versus -$0.51).
  • Net operating cash flow has slightly increased to -$8.62 million or 7.63% when compared to the same quarter last year. Despite an increase in cash flow, IMMUNOMEDICS INC's average is still marginally south of the industry average growth rate of 14.48%.
  • IMMU's very impressive revenue growth greatly exceeded the industry average of 8.9%. Since the same quarter one year prior, revenues leaped by 101.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • You can view the full analysis from the report here: IMMU
Must Read: RBC Capital Markets Picks 6 Aerospace and Defense Stocks to Buy

CLDX Chart CLDX data by YCharts
8. Celldex Therapeutics, Inc. (CLDX)

Rating: Sell, D
Market Cap: $1 billion
Year-to-date return: 58.2%

Celldex Therapeutics, Inc., a biopharmaceutical company, develops, manufactures, and commercializes novel therapeutics for human health care in the United States.

TheStreet Ratings team rates CELLDEX THERAPEUTICS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate CELLDEX THERAPEUTICS INC (CLDX) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 14.4% when compared to the same quarter one year ago, dropping from -$28.27 million to -$32.36 million.
  • Net operating cash flow has decreased to -$24.76 million or 18.72% 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.
  • CELLDEX THERAPEUTICS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CELLDEX THERAPEUTICS INC reported poor results of -$1.32 versus -$1.03 in the prior year. For the next year, the market is expecting a contraction of 3.8% in earnings (-$1.37 versus -$1.32).
  • After a year of stock price fluctuations, the net result is that CLDX's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.
  • 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 Biotechnology industry and the overall market, CELLDEX THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: CLDX
Must Read: 20 A+ Rated Mid-Cap Growth Stocks

ARNA Chart ARNA data by YCharts
7. Arena Pharmaceuticals, Inc. (ARNA)
Rating: Sell, D
Market Cap: $460.3 million
Year-to-date return: 58.8%

Arena Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes novel drugs that target G protein-coupled receptors. The company offers BELVIQ, a drug used to treat chronic weight management in adults.

TheStreet Ratings team rates ARENA PHARMACEUTICALS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate ARENA PHARMACEUTICALS INC (ARNA) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ARENA PHARMACEUTICALS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, ARENA PHARMACEUTICALS INC reported poor results of -$0.29 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 72.4% in earnings (-$0.50 versus -$0.29).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 458.4% when compared to the same quarter one year ago, falling from $7.48 million to -$26.81 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ARENA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 36.99%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 466.66% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The revenue fell significantly faster than the industry average of 8.9%. Since the same quarter one year prior, revenues fell by 28.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • You can view the full analysis from the report here: ARNA
Must Read: 12 Oil Stocks Down 30% or More

THRX Chart THRX data by YCharts
6. Theravance, Inc. (THRX)
Rating: Sell, D
Market Cap: $828.7 million
Year-to-date return: 60.3%

Theravance, Inc., a royalty management company, is focused on developing respiratory products.

TheStreet Ratings team rates THERAVANCE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate THERAVANCE INC (THRX) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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 analysis by TheStreet Ratings Team goes as follows:

  • THRX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 52.41%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • THERAVANCE 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, THERAVANCE INC reported poor results of -$0.66 versus -$0.30 in the prior year. This year, the market expects an improvement in earnings (-$0.16 versus -$0.66).
  • 48.19% is the gross profit margin for THERAVANCE INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -73.29% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 103.99% to $2.17 million when compared to the same quarter last year. In addition, THERAVANCE INC has also vastly surpassed the industry average cash flow growth rate of -10.20%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 87.7% when compared to the same quarter one year prior, rising from -$63.56 million to -$7.81 million.
  • You can view the full analysis from the report here: THRX
Must Read: 11 A+ Rated Volatile Stocks for Opportunistic Traders

KPTI Chart KPTI data by YCharts
5. Karyopharm Therapeutics Inc. (KPTI)
Rating: Sell, D
Market Cap: $379 million
Year-to-date return: 61.3%

Karyopharm Therapeutics Inc., a clinical-stage pharmaceutical company, focuses on the discovery and development of drugs directed against nuclear transport targets for the treatment of cancer and other major diseases.

TheStreet Ratings team rates KARYOPHARM THERAPEUTICS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate KARYOPHARM THERAPEUTICS INC (KPTI) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • KARYOPHARM THERAPEUTICS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, KARYOPHARM THERAPEUTICS INC reported poor results of -$2.41 versus -$0.74 in the prior year. For the next year, the market is expecting a contraction of 47.3% in earnings (-$3.55 versus -$2.41).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 99.0% when compared to the same quarter one year ago, falling from -$16.43 million to -$32.70 million.
  • 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. Compared to other companies in the Biotechnology industry and the overall market, KARYOPHARM THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$28.10 million or 136.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 65.88%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 67.27% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • You can view the full analysis from the report here: KPTI
Must Read: JPMorgan Picks 7 Pharmaceutical Stocks to Buy (or Hold) in Wake of Interest Rates Hike

RPTP Chart RPTP data by YCharts
4. Raptor Pharmaceutical Corp. (RPTP)

Rating: Sell, D
Market Cap: $487.1 million
Year-to-date return: 61.7%

Raptor Pharmaceutical Corp., a biopharmaceutical company, focuses on developing and commercializing life-altering therapeutics that treat debilitating and often fatal diseases.

TheStreet Ratings team rates RAPTOR PHARMACEUTICAL CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate RAPTOR PHARMACEUTICAL CORP (RPTP) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income has decreased by 9.9% when compared to the same quarter one year ago, dropping from -$12.69 million to -$13.95 million.
  • RPTP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 38.40%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, RAPTOR PHARMACEUTICAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RAPTOR PHARMACEUTICAL CORP is currently very high, coming in at 90.34%. Regardless of RPTP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RPTP's net profit margin of -59.78% significantly underperformed when compared to the industry average.
  • RPTP's debt-to-equity ratio of 0.97 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 6.67 is very high and demonstrates very strong liquidity.
  • You can view the full analysis from the report here: RPTP
Must Read: 14 Low-Debt but Volatile Growth Stocks to Buy, in Case of Fed Rate Hike

VSTM Chart VSTM data by YCharts
3. Verastem, Inc. (VSTM)
Rating: N/A
Market Cap: $66.2 million
Year-to-date return: 76.3%

XOMA Chart XOMA data by YCharts
2.XOMA Corporation (XOMA)

Rating: Sell, E+
Market Cap: $86.6 million
Year-to-date return: 80.6%

XOMA Corporation discovers and develops antibody-based therapeutics in the United States, Europe, and the Asia Pacific.

TheStreet Ratings team rates XOMA CORP as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:

We rate XOMA CORP (XOMA) a SELL. This is based on some significant below-par investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 99.7% when compared to the same quarter one year ago, falling from -$11.90 million to -$23.76 million.
  • Looking at the price performance of XOMA's shares over the past 12 months, there is not much good news to report: the stock is down 79.06%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • XOMA, with its very weak revenue results, has greatly underperformed against the industry average of 8.9%. Since the same quarter one year prior, revenues plummeted by 57.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Net operating cash flow has slightly increased to -$16.35 million or 3.26% when compared to the same quarter last year. Despite an increase in cash flow, XOMA CORP's cash flow growth rate is still lower than the industry average growth rate of 14.48%.
  • XOMA CORP's earnings per share declined by 17.6% 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, XOMA CORP continued to lose money by earning -$0.67 versus -$1.40 in the prior year. This year, the market expects an improvement in earnings (-$0.64 versus -$0.67).
  • You can view the full analysis from the report here: XOMA
Must Read: 10 Banks to Buy in Anticipation of Interest Rates Hike

TTPH Chart TTPH data by YCharts
1. Tetraphase Pharmaceuticals, Inc. (TTPH)

Rating: Sell, D
Market Cap: $271.3 million
Year-to-date return: 84.3%

Tetraphase Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops various antibiotics for the treatment of serious and life-threatening multi-drug resistant infections.

TheStreet Ratings team rates TETRAPHASE PHARMACEUTICALS as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate TETRAPHASE PHARMACEUTICALS (TTPH) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Pharmaceuticals industry. The net income has significantly decreased by 41.1% when compared to the same quarter one year ago, falling from -$18.46 million to -$26.04 million.
  • Net operating cash flow has significantly decreased to -$19.56 million or 60.88% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • TETRAPHASE PHARMACEUTICALS' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, TETRAPHASE PHARMACEUTICALS reported poor results of -$2.48 versus -$1.38 in the prior year. For the next year, the market is expecting a contraction of 12.5% in earnings (-$2.79 versus -$2.48).
  • Looking at the price performance of TTPH's shares over the past 12 months, there is not much good news to report: the stock is down 49.06%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, TETRAPHASE PHARMACEUTICALS's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: TTPH
Must Read: 14 Low-Debt but Volatile Growth Stocks to Buy, in Case of Fed Rate Hike

More from Stocks

The Stakes Are High for FAANG Stocks This Time Around

The Stakes Are High for FAANG Stocks This Time Around

Profit From the Good Side of Bad Selloffs: An Illustration

Profit From the Good Side of Bad Selloffs: An Illustration

Data Regulation on FAANG's Could Just Be Underway: Cramer's Investing Teach-in

Data Regulation on FAANG's Could Just Be Underway: Cramer's Investing Teach-in

Your Need to Know - Forward Look

Your Need to Know - Forward Look

A Guide to Investing in the Fast-Emerging Cannabis Industry

A Guide to Investing in the Fast-Emerging Cannabis Industry