6 Rallying Biotech Stocks With Strong Receivable Trends

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 |  Includes: BCRX, BIIB, BMRN, CERS, OMPI, SPPI
by: Kapitall

Do you like to trade on a stock's momentum? If so, we ran a screen you may be interested in.

We began by screening the biotech industry for stocks with positive market sentiment, rallying above their 20-day, 50-day, and 200-day moving averages.

We then screened for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables the healthier the company's revenue.

We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall (kapitall.com).

Do you think these stocks will continue rallying higher? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. BioCryst Pharmaceuticals, Inc. (BCRX): Designs, optimizes, and develops small-molecule pharmaceuticals that block key enzymes involved in infectious diseases, cancer, and inflammatory diseases. Market cap at $226.67M, most recent closing price at $4.61. The stock is trading 14.78% above its 20-day moving average, 24.65% above its 50-day MA, and 28.56% above its 200-day MA. Revenue grew by 125.05% during the most recent quarter ($12.22M vs. $5.43M y/y). Accounts receivable grew by -73.88% during the same time period ($7.59M vs. $29.06M y/y). Receivables, as a percentage of current assets, decreased from 28.93% to 14.33% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

2. Spectrum Pharmaceuticals, Inc. (SPPI): Primarily focuses on oncology and hematology. Market cap at $984.46M, most recent closing price at $16.54. The stock is trading 4.69% above its 20-day moving average, 23.89% above its 50-day MA, and 29.30% above its 200-day MA. Revenue grew by 37.29% during the most recent quarter ($59.86M vs. $43.6M y/y). Accounts receivable grew by 6.5% during the same time period ($55.38M vs. $52M y/y). Receivables, as a percentage of current assets, decreased from 37.26% to 21.07% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. Cerus Corporation (CERS): Engages in the development and commercialization of the INTERCEPT Blood System. Market cap at $191.52M, most recent closing price at $3.52. The stock is trading 1.63% above its 20-day moving average, 1.79% above its 50-day MA, and 7.01% above its 200-day MA. Revenue grew by 32.63% during the most recent quarter ($8.78M vs. $6.62M y/y). Accounts receivable grew by 4.58% during the same time period ($5.02M vs. $4.8M y/y). Receivables, as a percentage of current assets, decreased from 12.16% to 10.77% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

4. Obagi Medical Products, Inc. (OMPI): Develops and markets topical aesthetic and therapeutic prescription skin care systems. Market cap at $306.05M, most recent closing price at $16.34. The stock is trading 4.76% above its 20-day moving average, 14.96% above its 50-day MA, and 38.05% above its 200-day MA. Revenue grew by 15.99% during the most recent quarter ($30.75M vs. $26.51M y/y). Accounts receivable grew by -0.1% during the same time period ($20.92M vs. $20.94M y/y). Receivables, as a percentage of current assets, decreased from 39.38% to 29.82% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

5. Biogen Idec Inc. (BIIB): Develops, manufactures, and markets therapeutics in the areas of neurology, immunology, hemophilia, and oncology in the United States and internationally. Market cap at $34.73B, most recent closing price at $144.96. The stock is trading 0.66% above its 20-day moving average, 4.74% above its 50-day MA, and 18.50% above its 200-day MA. Revenue grew by 7.37% during the most recent quarter ($1,292.01M vs. $1,203.34M y/y). Accounts receivable grew by 1.22% during the same time period ($941.59M vs. $930.22M y/y). Receivables, as a percentage of current assets, decreased from 35.39% to 35.16% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

6. BioMarin Pharmaceutical Inc. (BMRN): Develops and commercializes biopharmaceuticals for serious diseases and medical conditions. Market cap at $5.01B, most recent closing price at $40.98. The stock is trading 1.20% above its 20-day moving average, 5.77% above its 50-day MA, and 15.16% above its 200-day MA. Revenue grew by 6.57% during the most recent quarter ($116.65M vs. $109.46M y/y). Accounts receivable grew by 1.58% during the same time period ($112.66M vs. $110.91M y/y). Receivables, as a percentage of current assets, decreased from 22.01% to 21.94% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.