NEW YORK ( TheStreet) -- Chindex International (Nasdaq: CHDX) has been upgraded by TheStreet Ratings from hold to buy. 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, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Chindex International, Inc. engages in the provision of healthcare services; and sale of medical equipment, instrumentation, and products. The company operates in two segments, Healthcare Services and Medical Products. The company has a P/E ratio of 30.8, below the average wholesale industry P/E ratio of 33.1 and above the S&P 500 P/E ratio of 21.9. Chindex International has a market cap of $266.7 million and is part of the services sector and wholesale industry. Shares are up 4.4% year to date as of the close of trading on Tuesday. You can view the full Chindex International Ratings Report or get investment ideas from our investment research center.
Chindex (CHDX) spiked to a five-year high of $19.71 on Tuesday after the announcement that TPG and Shanghai Fosun Pharmaceutical would acquire the drug manufacturer. The deal is worth $369 million, and the consortium will pay $19.50 per share in cash for Chindex. Founder and Chief Executive Officer Roberta Lipson will stay on as CEO after the deal. The deal should give TPG and Fosun a foothold in China's private healthcare sector, which has been growing quickly as the Chinese government invests in it to alleviate pressure on public hospitals and to drive down prices through more competition in the market.
Shares of Chindex International (Nasdaq:CHDX) have taken a tremendous swing upward. The stock is trading at $10.09 as of 10:51 a.m. ET, 20.1% above Monday's closing price of $8.40. Volume is at 51,498, 0.9 times the daily average of 56,300.