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 post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Edwards Lifesciences as such a stock due to the following factors:
- EW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $168.8 million.
- EW is down 3.9% today from today's close.
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More details on EW:
Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. EW has a PE ratio of 21.2. Currently there are 8 analysts that rate Edwards Lifesciences a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Edwards Lifesciences has been 1.4 million shares per day over the past 30 days. Edwards Lifesciences has a market cap of $8.4 billion and is part of the health care sector and health services industry. The stock has a beta of 0.53 and a short float of 11.1% with 3.91 days to cover. Shares are up 21.5% year-to-date as of the close of trading on Wednesday.
rates Edwards Lifesciences 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, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- EW's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues slightly increased by 8.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.38, 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 3.66, which clearly demonstrates the ability to cover short-term cash needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, EDWARDS LIFESCIENCES CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for EDWARDS LIFESCIENCES CORP is currently very high, coming in at 77.01%. Regardless of EW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 13.75% trails the industry average.
- EDWARDS LIFESCIENCES CORP's earnings per share declined by 11.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, EDWARDS LIFESCIENCES CORP increased its bottom line by earning $3.42 versus $2.47 in the prior year. For the next year, the market is expecting a contraction of 12.2% in earnings ($3.00 versus $3.42).
- You can view the full Edwards Lifesciences Ratings Report.