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 $365.1 million.
- CFN has traded 12.9 million 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 23.6. Currently there are 5 analysts that rate CareFusion a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for CareFusion has been 1.3 million shares per day over the past 30 days. CareFusion has a market cap of $9.4 billion and is part of the health care sector and health services industry. The stock has a beta of 0.89 and a short float of 1.7% with 0.52 days to cover. Shares are up 42.5% 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, growth in earnings per share and increase in net income. 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:
- The revenue growth came in higher than the industry average of 7.9%. Since the same quarter one year prior, revenues rose by 24.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.45, 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 2.65, which clearly demonstrates the ability to cover short-term cash needs.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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 36.7% 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 $1.96 versus $1.73 in the prior year. This year, the market expects an improvement in earnings ($2.68 versus $1.96).
- 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 28.4% when compared to the same quarter one year prior, rising from $109.00 million to $140.00 million.
- You can view the full CareFusion Ratings Report.