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 $411.9 million.
- COV has traded 39,256 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 company operates through Medical Devices and U.S. Medical Supplies segments. The stock currently has a dividend yield of 1.4%. COV has a PE ratio of 28.3. Currently there are 5 analysts that rate Covidien a buy, no analysts rate it a sell, and 10 rate it a hold.
The average volume for Covidien has been 3.3 million shares per day over the past 30 days. Covidien has a market cap of $46.8 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 0.3% with 0.89 days to cover. Shares are up 0.2% year-to-date as of the close of trading on Wednesday.
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. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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 47.05% 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 ($4.33 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 7.2%. 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 65.95%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.91% is above that of the industry average.
- You can view the full Covidien Ratings Report.