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

Mednax

(

MD

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Mednax as such a stock due to the following factors:

  • MD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.9 million.
  • MD has traded 7,156 shares today.
  • MD is trading at a new lifetime high.

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More details on MD:

MEDNAX, Inc., together with its subsidiaries, provides neonatal, anesthesia, maternal-fetal, and other pediatric subspecialties physician services in the United States and Puerto Rico. MD has a PE ratio of 24. Currently there are 9 analysts that rate Mednax a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Mednax has been 612,000 shares per day over the past 30 days. Mednax has a market cap of $7.4 billion and is part of the health care sector and health services industry. The stock has a beta of 0.70 and a short float of 6.9% with 9.42 days to cover. Shares are up 20.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mednax as a

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, notable return on equity, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • MD's revenue growth has slightly outpaced the industry average of 12.3%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MD has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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, MEDNAX INC's return on equity exceeds that of both the industry average and the S&P 500.
  • 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 37.71% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MEDNAX INC has improved earnings per share by 14.3% 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, MEDNAX INC increased its bottom line by earning $3.17 versus $2.78 in the prior year. This year, the market expects an improvement in earnings ($3.60 versus $3.17).

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