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 Mednax as such a stock due to the following factors:
- MD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.7 million.
- MD has traded 3,028 shares today.
- MD is trading at a new lifetime high.
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More details on MD:
MEDNAX, Inc., together with its subsidiaries, provides newborn, anesthesia, maternal-fetal, and other pediatric subspecialties care physician services in the United States and Puerto Rico. MD has a PE ratio of 21.6. Currently there are 9 analysts that rate Mednax a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Mednax has been 720,600 shares per day over the past 30 days. Mednax has a market cap of $6.6 billion and is part of the health care sector and health services industry. The stock has a beta of 1.20 and a short float of 6.4% with 8.41 days to cover. Shares are up 25.4% year-to-date as of the close of trading on Thursday.
rates Mednax 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 largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- 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 26.72% 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, MD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MEDNAX INC has improved earnings per share by 13.2% 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, MEDNAX INC increased its bottom line by earning $2.78 versus $2.42 in the prior year. This year, the market expects an improvement in earnings ($3.15 versus $2.78).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Providers & Services industry average. The net income increased by 12.0% when compared to the same quarter one year prior, going from $76.96 million to $86.21 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 19.9%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MD's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.29, which illustrates the ability to avoid short-term cash problems.
- You can view the full Mednax Ratings Report.