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

Stericycle

(

SRCL

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

  • SRCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.8 million.
  • SRCL has traded 23,892 shares today.
  • SRCL is trading at a new lifetime high.

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More details on SRCL:

Stericycle, Inc., together with its subsidiaries, provides regulated and compliance solutions to the healthcare and commercial businesses. The company collects and processes specialized waste for disposal services. SRCL has a PE ratio of 31.5. Currently there are 10 analysts that rate Stericycle a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Recommends

The average volume for Stericycle has been 341,400 shares per day over the past 30 days. Stericycle has a market cap of $10.5 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.32 and a short float of 2.8% with 4.82 days to cover. Shares are up 5.7% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stericycle as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 24.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • STERICYCLE INC'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 two years. We feel that this trend should continue. During the past fiscal year, STERICYCLE INC increased its bottom line by earning $3.56 versus $3.08 in the prior year. This year, the market expects an improvement in earnings ($4.26 versus $3.56).
  • The debt-to-equity ratio is somewhat low, currently at 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.97 is somewhat weak and could be cause for future problems.
  • 44.13% is the gross profit margin for STERICYCLE INC which we consider to be strong. Regardless of SRCL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.40% trails the industry average.
  • In its most recent trading session, SRCL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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