Trade-Ideas: Mallinckrodt (MNK) 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 Mallinckrodt as such a stock due to the following factors:
- MNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $181.0 million.
- MNK has traded 24,143 shares today.
- MNK is trading at a new lifetime high.
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More details on MNK:
Mallinckrodt public limited company develops, manufactures, markets, and distributes specialty pharmaceutical products and medical imaging agents worldwide. The company operates through two segments, Specialty Pharmaceuticals and Global Medical Imaging. Currently there are 9 analysts that rate Mallinckrodt a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Mallinckrodt has been 1.1 million shares per day over the past 30 days. Mallinckrodt has a market cap of $15.4 billion and is part of the health care sector and drugs industry. Shares are up 32.5% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Mallinckrodt as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
Highlights from the ratings report include:
- MNK's very impressive revenue growth greatly exceeded the industry average of 8.2%. Since the same quarter one year prior, revenues leaped by 60.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, MNK has a quick ratio of 1.84, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to other companies in the Pharmaceuticals industry and the overall market, MALLINCKRODT PLC's return on equity significantly trails that of both the industry average and the S&P 500.
- MALLINCKRODT PLC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MALLINCKRODT PLC swung to a loss, reporting -$3.57 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($7.32 versus -$3.57).
- You can view the full Mallinckrodt Ratings Report.
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