Strong And Under The Radar Today: Pharmerica (PMC)

Trade-Ideas LLC identified Pharmerica (PMC) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Pharmerica

(

PMC

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Pharmerica as such a stock due to the following factors:

  • PMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.7 million.
  • PMC has traded 5.11939999999999972857267493964172899723052978515625 options contracts today.
  • PMC is making at least a new 3-day high.
  • PMC is mentioned 0.84 times per day on StockTwits.
  • PMC has not yet been mentioned on StockTwits today.
  • PMC is currently in the upper 20% of its 1-year range.
  • PMC is in the upper 35% of its 20-day range.
  • PMC is in the upper 45% of its 5-day range.
  • PMC is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on PMC:

PharMerica Corporation operates as an institutional pharmacy services company in the United States. The company offers services to healthcare facilities; pharmacy management services to hospitals; specialty infusion services to patients outside hospitals; and oncology pharmacy services. Currently there are 5 analysts that rate Pharmerica a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Pharmerica has been 206,800 shares per day over the past 30 days. Pharmerica has a market cap of $1.0 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.69 and a short float of 2.7% with 3.55 days to cover. Shares are up 60.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Pharmerica as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • PMC's revenue growth has slightly outpaced the industry average of 9.1%. Since the same quarter one year prior, revenues rose by 10.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.71, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.42, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 123.7% when compared to the same quarter one year prior, rising from -$9.70 million to $2.30 million.
  • Net operating cash flow has increased to -$22.20 million or 16.22% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.68%.
  • 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. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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