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 $63.7 million.
- CFN has traded 33,287 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, respiratory care, and surveillance and analytics. CFN has a PE ratio of 24.7. Currently there are 5 analysts that rate CareFusion a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for CareFusion has been 1.7 million shares per day over the past 30 days. CareFusion has a market cap of $9.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.91 and a short float of 1.6% with 2.34 days to cover. Shares are up 11.1% 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, increase in stock price during the past year, growth in earnings per share and increase in net income. 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 3.6%. Since the same quarter one year prior, revenues slightly increased by 7.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CFN's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CFN has a quick ratio of 1.88, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- CAREFUSION CORP has improved earnings per share by 29.7% 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 $1.73 versus $1.60 in the prior year. This year, the market expects an improvement in earnings ($2.31 versus $1.73).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income increased by 21.4% when compared to the same quarter one year prior, going from $84.00 million to $102.00 million.
- You can view the full CareFusion Ratings Report.