Trade-Ideas LLC identified Acorda Therapeutics ( ACOR) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Acorda Therapeutics as such a stock due to the following factors:

  • ACOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.8 million.
  • ACOR has traded 238,215 shares today.
  • ACOR is down 3% today.
  • ACOR was up 7% yesterday.

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More details on ACOR:

Acorda Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and commercializes novel therapies for neurological disorders in the United States. ACOR has a PE ratio of 76. Currently there are 3 analysts that rate Acorda Therapeutics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Acorda Therapeutics has been 545,500 shares per day over the past 30 days. Acorda has a market cap of $1.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.18 and a short float of 17.4% with 10.15 days to cover. Shares are down 39.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • 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 83.1% when compared to the same quarter one year prior, rising from -$3.09 million to -$0.52 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 19.5%. Since the same quarter one year prior, revenues rose by 16.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ACORDA THERAPEUTICS 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, ACORDA THERAPEUTICS INC reported lower earnings of $0.25 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.71 versus $0.25).
  • ACOR'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 29.03%, 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. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, ACOR is still more expensive than most of the other companies in its industry.
  • 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 Biotechnology industry and the overall market, ACORDA THERAPEUTICS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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