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 CVS Caremark as such a stock due to the following factors:
- CVS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $459.4 million.
- CVS has traded 3,520 shares today.
- CVS is trading at a new lifetime high.
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More details on CVS:
CVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. The company operates through Pharmacy Services and Retail Pharmacy segments. The stock currently has a dividend yield of 1.5%. CVS has a PE ratio of 19.0. Currently there are 15 analysts that rate CVS Caremark a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for CVS Caremark has been 5.8 million shares per day over the past 30 days. CVS Caremark has a market cap of $84.2 billion and is part of the services sector and retail industry. The stock has a beta of 0.84 and a short float of 0.8% with 1.63 days to cover. Shares are down 0.3% year-to-date as of the close of trading on Monday.
rates CVS Caremark as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. 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 7.8%. Since the same quarter one year prior, revenues slightly increased by 4.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.53% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CVS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CVS CAREMARK CORP has improved earnings per share by 16.7% 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, CVS CAREMARK CORP increased its bottom line by earning $3.76 versus $3.03 in the prior year. This year, the market expects an improvement in earnings ($4.47 versus $3.76).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Food & Staples Retailing industry average, but is less than that of the S&P 500. The net income increased by 12.0% when compared to the same quarter one year prior, going from $1,129.00 million to $1,265.00 million.
- The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
- You can view the full CVS Caremark Ratings Report.