Catamaran (CTRX) Trading With Heavy Volume Before Market Open
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Catamaran as such a stock due to the following factors:
- CTRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $113.7 million.
- CTRX traded 377,542 shares today in the pre-market hours as of 7:43 AM, representing 19.9% of its average daily volume.
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More details on CTRX:
Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments, PBM and HCIT. CTRX has a PE ratio of 31.8. Currently there are 15 analysts that rate Catamaran a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Catamaran has been 1.7 million shares per day over the past 30 days. Catamaran has a market cap of $10.1 billion and is part of the health care sector and health services industry. The stock has a beta of 0.43 and a short float of 1.5% with 1.59 days to cover. Shares are down 6.5% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Catamaran as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- CTRX's revenue growth has slightly outpaced the industry average of 18.4%. Since the same quarter one year prior, revenues rose by 26.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CTRX's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.34, which illustrates the ability to avoid short-term cash problems.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- CATAMARAN CORP has improved earnings per share by 33.3% 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. We feel that this trend should continue. During the past fiscal year, CATAMARAN CORP increased its bottom line by earning $1.52 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($2.58 versus $1.52).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Providers & Services industry average. The net income increased by 35.0% when compared to the same quarter one year prior, rising from $74.41 million to $100.45 million.
- You can view the full Catamaran Ratings Report.
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