BioScrip Inc. Stock Upgraded (BIOS)

NEW YORK ( TheStreet) -- BioScrip (Nasdaq: BIOS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

Highlights from the ratings report include:
  • BIOSCRIP INC reported significant earnings per share improvement 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 year. We feel that this trend should continue. During the past fiscal year, BIOSCRIP INC turned its bottom line around by earning $0.14 versus -$1.33 in the prior year. This year, the market expects an improvement in earnings ($0.20 versus $0.14).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 110.0% when compared to the same quarter one year prior, rising from -$67.07 million to $6.71 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.2%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 53.95% to -$12.57 million when compared to the same quarter last year. In addition, BIOSCRIP INC has also vastly surpassed the industry average cash flow growth rate of -96.59%.
  • Powered by its strong earnings growth of 109.60% and other important driving factors, this stock has surged by 52.41% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

BioScrip, Inc. provides pharmacy and home health services in the United States. It operates in two segments, Infusion/Home Health Services and Pharmacy Services. The company has a P/E ratio of 49.8, above the S&P 500 P/E ratio of 17.7. BioScrip has a market cap of $311.2 million and is part of the services sector and retail industry. Shares are up 27.3% year to date as of the close of trading on Tuesday.

You can view the full BioScrip Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff