New Lifetime High For VCA (WOOF)
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 or Stephanie Link.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified VCA as such a stock due to the following factors:
- WOOF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.1 million.
- WOOF has traded 5,745 shares today.
- WOOF is trading at a new lifetime high.
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More details on WOOF:
VCA Inc. operates as an animal healthcare company in the United States and Canada. It operates through two segments, Animal Hospital and Laboratory. WOOF has a PE ratio of 34.9. Currently there are 5 analysts that rate VCA a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for VCA has been 620,300 shares per day over the past 30 days. VCA has a market cap of $4.5 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.76 and a short float of 1.1% with 2.75 days to cover. Shares are up 9.2% year-to-date as of the close of trading on Friday.
Analysis:
rates VCA as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 18.4%. Since the same quarter one year prior, revenues rose by 10.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 73.64% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WOOF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- VCA INC has improved earnings per share by 17.9% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, VCA INC's EPS of $1.53 remained unchanged from the prior years' EPS of $1.53. This year, the market expects an improvement in earnings ($2.23 versus $1.53).
- Net operating cash flow has increased to $45.16 million or 20.86% when compared to the same quarter last year. Despite an increase in cash flow of 20.86%, VCA INC is still growing at a significantly lower rate than the industry average of 105.25%.
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.72 is somewhat weak and could be cause for future problems.
- You can view the full VCA Ratings Report.
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