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 or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified CareFusion as such a stock due to the following factors:
- CFN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $111.7 million.
- CFN has traded 17,910 shares today.
- CFN is trading at a new lifetime high.
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More details on CFN:
CareFusion Corporation, a medical technology company, provides various healthcare products and services. It offers product lines in the areas of medication management, infection prevention, operating room effectiveness, and respiratory care. CFN has a PE ratio of 30.2. Currently there are no analysts that rate CareFusion a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for CareFusion has been 3.6 million shares per day over the past 30 days. CareFusion has a market cap of $12.1 billion and is part of the health care sector and health services industry. The stock has a beta of 1.08 and a short float of 0.9% with 1.07 days to cover. Shares are up 0.3% year-to-date as of the close of trading on Monday.
rates CareFusion as a
. 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, solid stock price performance, reasonable valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- CFN's revenue growth has slightly outpaced the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 11.1%. 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, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.94, which clearly demonstrates the ability to cover short-term cash needs.
- 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 48.69% 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, CFN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CAREFUSION CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CAREFUSION CORP increased its bottom line by earning $1.96 versus $1.73 in the prior year. This year, the market expects an improvement in earnings ($2.86 versus $1.96).
- You can view the full CareFusion Ratings Report.