Trade-Ideas: Magellan Health (MGLN) Is Today's New Lifetime High 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 new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Magellan Health as such a stock due to the following factors:
- MGLN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.2 million.
- MGLN has traded 37,897 shares today.
- MGLN is trading at a new lifetime high.
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More details on MGLN:
Magellan Health, Inc. engages in the healthcare management business in the United States. The company's Managed Healthcare Commercial segment offers managed behavioral healthcare services, as well as employee assistance programs services. MGLN has a PE ratio of 23.0. Currently there is 1 analyst that rates Magellan Health a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Magellan Health has been 139,200 shares per day over the past 30 days. Magellan Health has a market cap of $1.8 billion and is part of the health care sector and health services industry. The stock has a beta of 0.76 and a short float of 1.5% with 2.16 days to cover. Shares are up 13.4% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Magellan Health as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
- MGLN's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MGLN has a quick ratio of 1.84, which demonstrates the ability of the company to cover short-term liquidity needs.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Health Care Providers & Services industry average. The net income increased by 16.6% when compared to the same quarter one year prior, going from $18.49 million to $21.57 million.
- Net operating cash flow has increased to $16.80 million or 41.44% when compared to the same quarter last year. Despite an increase in cash flow of 41.44%, MAGELLAN HEALTH INC is still growing at a significantly lower rate than the industry average of 113.96%.
- You can view the full Magellan Health Ratings Report.
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