Trade-Ideas: Henry Schein (HSIC) Is Today's Post-Market Leader Stock
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 post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Henry Schein as such a stock due to the following factors:
- HSIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.4 million.
- HSIC is up 2.7% today from today's close.
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More details on HSIC:
Henry Schein, Inc. provides health care products and services worldwide. It operates in two segments, Health Care Distribution; and Technology and Value-Added Services. HSIC has a PE ratio of 25.1. Currently there are 5 analysts that rate Henry Schein a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Henry Schein has been 417,700 shares per day over the past 30 days. Henry Schein has a market cap of $11.5 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.90 and a short float of 2.6% with 5.61 days to cover. Shares are up 1.6% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Henry Schein as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- SCHEIN (HENRY) INC has improved earnings per share by 9.1% 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, SCHEIN (HENRY) INC increased its bottom line by earning $5.43 versus $4.92 in the prior year. This year, the market expects an improvement in earnings ($5.92 versus $5.43).
- HSIC's revenue growth trails the industry average of 18.4%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, SCHEIN (HENRY) INC's return on equity exceeds that of both the industry average and the S&P 500.
- HSIC's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that HSIC's debt-to-equity ratio is low, the quick ratio, which is currently 0.68, displays a potential problem in covering short-term cash needs.
- You can view the full Henry Schein Ratings Report.
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