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

Chemed Corporation

(

CHE

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

  • CHE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.1 million.
  • CHE has traded 3,217 shares today.
  • CHE is trading at a new lifetime high.

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More details on CHE:

Chemed Corporation provides hospice and palliative care services in the United States. It operates in two segments, VITAS and Roto-Rooter. The company offers its services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers. The stock currently has a dividend yield of 0.9%. CHE has a PE ratio of 21.2. Currently there is 1 analyst that rates Chemed Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Chemed Corporation has been 291,000 shares per day over the past 30 days. Chemed has a market cap of $1.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.95 and a short float of 40.6% with 22.02 days to cover. Shares are up 12.5% 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 Chemed Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.48 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
  • CHEMED CORP's earnings per share declined by 8.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CHEMED CORP reported lower earnings of $4.16 versus $4.63 in the prior year. This year, the market expects an improvement in earnings ($5.95 versus $4.16).
  • CHE, with its decline in revenue, underperformed when compared the industry average of 10.3%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, CHEMED CORP's return on equity exceeds that of both the industry average and the S&P 500.

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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