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 Covidien as such a stock due to the following factors:
- COV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $312.7 million.
- COV has traded 33,480 shares today.
- COV is trading at a new lifetime high.
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More details on COV:
Covidien plc develops, manufactures, and sells healthcare products for use in clinical and home settings worldwide. The stock currently has a dividend yield of 1.4%. COV has a PE ratio of 27.2. Currently there are 5 analysts that rate Covidien a buy, no analysts rate it a sell, and 12 rate it a hold.
The average volume for Covidien has been 5.1 million shares per day over the past 30 days. Covidien has a market cap of $97.7 billion and is part of the health care sector and health services industry. The stock has a beta of 1.28 and a short float of 0.4% with 1.25 days to cover. Shares are up 45.8% year-to-date as of the close of trading on Tuesday.
rates Covidien as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 43.03% and other important driving factors, this stock has surged by 47.52% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, COV should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- COVIDIEN PLC has improved earnings per share by 43.0% 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, COVIDIEN PLC increased its bottom line by earning $3.64 versus $3.40 in the prior year. This year, the market expects an improvement in earnings ($4.35 versus $3.64).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 39.0% when compared to the same quarter one year prior, rising from $372.00 million to $517.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.9%. Since the same quarter one year prior, revenues slightly increased by 6.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for COVIDIEN PLC is rather high; currently it is at 60.79%. Regardless of COV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, COV's net profit margin of 18.91% compares favorably to the industry average.
- You can view the full Covidien Ratings Report.