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

  • PETX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.1 million.
  • PETX has traded 104,940 shares today.
  • PETX is trading at 3.91 times the normal volume for the stock at this time of day.
  • PETX is trading at a new high 3.57% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PETX with the Ticky from Trade-Ideas. See the FREE profile for PETX NOW at Trade-Ideas

More details on PETX:

Aratana Therapeutics, Inc., a development-stage biopharmaceutical company, focuses on the licensing, development, and commercialization of biopharmaceutical products for the companion animals worldwide. Currently there are 6 analysts that rate Aratana Therapeutics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Aratana Therapeutics has been 531,200 shares per day over the past 30 days. Aratana has a market cap of $214.6 million and is part of the health care sector and drugs industry. The stock has a beta of 3.67 and a short float of 15.9% with 8.28 days to cover. Shares are down 67% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Aratana Therapeutics as a sell. 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 ratings report include:
  • ARATANA THERAPEUTICS 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, ARATANA THERAPEUTICS reported poor results of -$1.31 versus -$0.23 in the prior year. For the next year, the market is expecting a contraction of 15.3% in earnings (-$1.51 versus -$1.31).
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 437.4% when compared to the same quarter one year ago, falling from -$10.13 million to -$54.44 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 Pharmaceuticals industry and the overall market, ARATANA THERAPEUTICS'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 -$10.30 million or 51.08% 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 55.33%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 351.42% 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.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.