Market Overview

RTI Biologics and STAAR Surgical End the Week Near 52-Week Highs

The markets ended the week closing lower two days in a row. Yet small cap biotech companies RTI Biologics (NASDAQ: RTIX) and STAAR Surgical (NASDAQ: STAA) rose to new 52-week highs of $3.75 and $7.08 per share, respectively, in Friday's trading session.

RTI Biologics has been in a very strong uptrend since February and has hit 52-week highs ten times in the past month. It recently posted strong second-quarter results and raised its outlook for the full year. The Florida-based company produces orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues. It has a market cap of $201.3 million.

The long-term earnings per share growth forecast is 26.9%. The forward P/E ratio forecast is in line with the industry average and the PEG ratio is 0.9. Cash on hand has increased in recent quarters while long-term debt has decreased. Shares are trading more than 37% higher than at the beginning of the year. The stock has outperformed competitors Integra LifeSciences (NASDAQ: IART) and Medtronic (NYSE: MDT), as well as the broader markets, year to date.

STAAR Surgical recently reported better-than-expected second-quarter results and boosted its guidance. The share price has risen more than 35% since then. The first quarter was the first profitable one since 2000. The California-based company develops, manufactures and sells implantable lenses for the cataracts and refractive surgery, as well as sells related instruments, devices and equipment. Its market cap is $247.9 million.

Cash on hand has increased in the past few quarters while long-term debt has decreased. Cash flow from operations has increased in that time as well. Revenue is forecast to be up 15% this year and up 13% in the following year. Shares are trading almost 46% higher than a year ago. The stock has outperformed competitor Cooper Companies (NASDAQ: COO), as well as the broader markets, over the past six months.

Action Items:

Bullish: Traders interested in biotech exchange traded funds might want to consider the following trades:

  • Biotech HOLDRs (NYSE: BBH): up almost 14% in the past year
  • iShares Nasdaq Biotechnology (NASDAQ: IBB): up more than 10% in the past year
  • SPDR S&P Biotech (NYSE: XBI): up almost 8% in the past year

Bearish: Or traders looking for a hedge might want to consider these alternative positions:

  • ProShares UltraShort Health Care (NYSE: RXD): up more than 29% in the past month
  • ProShares UltraShort Nasdaq Biotech (NYSE: BIS): up more than 34% in the past month

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Posted-In: 52-Week Highs biotech ETFs Biotech Stocks Cooper Companies integra lifesciencesLong Ideas Short Ideas Trading Ideas

 

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