CareFusion Corp Stock Upgraded (CFN)
NEW YORK (
)
-- CareFusion
(NYSE:
) has been upgraded by TheStreet Ratings from hold to 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, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although CFN's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 2.68, which clearly demonstrates the ability to cover short-term cash needs.
- CAREFUSION CORP has improved earnings per share by 31.3% 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, CAREFUSION CORP increased its bottom line by earning $1.29 versus $0.71 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $1.29).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry average. The net income increased by 25.0% when compared to the same quarter one year prior, going from $76.00 million to $95.00 million.
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CareFusion Corporation, a medical technology company, provides various healthcare products and services in the United States and internationally. It operates in two segments, Critical Care Technologies, and Medical Technologies and Services. The company has a P/E ratio of 13.7, below the average health services industry P/E ratio of 19.6 and below the S&P 500 P/E ratio of 17.7. CareFusion has a market cap of $5.34 billion and is part of the
sector and
industry. Shares are down 0.2% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet RatingsStaff
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