Today's Strong And Under The Radar Stock: Cantel Medical (CMN)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Cantel Medical as such a stock due to the following factors:
- CMN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
- CMN has traded 9.850699999999999789679350215010344982147216796875 options contracts today.
- CMN is making at least a new 3-day high.
- CMN has a PE ratio of 55.
- CMN is mentioned 1.87 times per day on StockTwits.
- CMN has not yet been mentioned on StockTwits today.
- CMN is currently in the upper 20% of its 1-year range.
- CMN is in the upper 35% of its 20-day range.
- CMN is in the upper 45% of its 5-day range.
- CMN 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 CMN:
Cantel Medical Corp. provides infection prevention and control products and services in the healthcare market. The company operates through Endoscopy, Water Purification and Filtration, Healthcare Disposables, and Dialysis segments. The stock currently has a dividend yield of 0.2%. CMN has a PE ratio of 55. Currently there is 1 analyst that rates Cantel Medical a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Cantel Medical has been 131,800 shares per day over the past 30 days. Cantel Medical has a market cap of $2.6 billion and is part of the health care sector and health services industry. The stock has a beta of 1.18 and a short float of 3.1% with 6.89 days to cover. Shares are up 44.1% year-to-date as of the close of trading on Monday.
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Analysis:
rates Cantel Medical as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- 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 48.04% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- CANTEL MEDICAL CORP has improved earnings per share by 23.1% 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, CANTEL MEDICAL CORP increased its bottom line by earning $1.16 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($1.43 versus $1.16).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 24.0% when compared to the same quarter one year prior, going from $10.71 million to $13.27 million.
- CMN's revenue growth trails the industry average of 37.3%. Since the same quarter one year prior, revenues rose by 15.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CMN's debt-to-equity ratio is very low at 0.19 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 1.44, which illustrates the ability to avoid short-term cash problems.
- You can view the full Cantel Medical Ratings Report.
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