Medco, Toll Brothers, Tyco Hit 52-Week Highs

NEW YORK ( TheStreet) -- Shares of Medco Health Solutions ( MHS), Toll Brothers ( TOL) and Tyco International ( TYC) hit 52-week highs on Wednesday.

Medco Health Solutions

The health care company's acquisition by pharmacy benefit manager Express Scripts ( ESRX) is expected to be ruled on by the Federal Trade Commission as soon as Friday, according to Bloomberg.

"Express Scripts ESRX and Medco MHS announced Wednesday that they may be able to close their merger as soon as next week," Morningstar analysts wrote in a report on Wednesday. "As we previously indicated, we plan to raise our fair value estimate for Express Scripts to $73 and for Medco to $88. We believe the merger has the potential to create significant revenue and cost synergies."

Shares of Medco hit a 52-week high Wednesday of $72.50. The stock's 52-week low of $44.60 was set on Oct. 4.

Medco has an estimated price-to-earnings ratio for next year of 14.95 times; the average for health care providers is 17.78. For comparison, Cigna ( CI) has a lower forward P/E of 7.79 times; Express Scripts' forward P/E is 13.01.

Thirteen of the 20 analysts who cover Medco rated it hold. Six analysts gave the stock a buy rating and one rated it sell.

TheStreet Ratings gives Medco a B grade with a buy rating and a $79.51 price target. The stock has risen 27.67% year to date.

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Toll Brothers

The homebuilder's CEO, Dougals Yearly, told CNBC Tuesday that his company has had the best spring season in five years as orders have risen a great deal.

"Given the more recent macro improvements and firming of market conditions, we are increasingly bullish on the homebuilding sector as a whole," Williams Financial Group analysts wrote in a March 12 report. "We are not ready to call recovery, but the better positioned homebuilders should benefit from the spring selling season and as further confirmation of macro improvements become transparent."

Shares of Toll Brothers hit a 52-week high Wednesday of $25.29. The stock's 52-week low of $13.16 was set on Oct. 4.

Toll Brothers' forward P/E is 34.16; the average for home construction companies is 24.3. For comparison, both Lennar ( LEN) and D.R. Horton ( DHI) have lower forward P/Es of 19.94 and 18.81, respectively.

Fourteen of the 24 analysts who cover Toll Brothers rated it hold. Eight analysts gave the stock a buy rating and two rated it sell.

TheStreet Ratings gives Toll Brothers a C+ grade and a hold rating. The stock has risen 21.84% year to date.


Tyco International

The fire protection company announced Wednesday that its flow control division is merging with Pentair ( PNR). Under the all-stock merger, Tyco shareholders will own 52.5% of the combined company and Pentair shareholders will own 47.5%.

"We continue to believe TYC management is focused on maximizingshareholder value," Credit Suisse analysts wrote in a March 28 report. "Part of our outperform thesis on TYC (we upgraded TYC on 2/27) was that all three business units (ADT, Commercial F&S, Flow) had takeout potential."

Tyco International's stock hit a 52-week high Wednesday of $56.19. The stock's 52-week low of $37.40 was set on Aug. 9.

Tyco has an estimated price-to-earnings ratio for next year of 13.48 times; the average for diversified industrials companies is 11.81.

Twelve of the 19 analysts who cover Tyco rated it buy; seven analysts gave the stock a hold rating.

TheStreet Ratings gives Tyco an A grade with a buy rating and a $61.52 price target. The stock has risen 19.48% year to date.

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-- Written by Alexandra Zendrian

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