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 Aetna ( AET) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Aetna as such a stock due to the following factors:
- AET has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $199.1 million.
- AET has traded 1.9 million shares today.
- AET is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AET with the Ticky from Trade-Ideas. See the FREE profile for AET NOW at Trade-Ideas More details on AET: Aetna Inc. operates as a diversified health care benefits company in the United States. The company operates in three segments: Health Care, Group Insurance, and Large Case Pensions. The stock currently has a dividend yield of 1.2%. AET has a PE ratio of 13.3. Currently there are 10 analysts that rate Aetna a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for Aetna has been 3.0 million shares per day over the past 30 days. Aetna has a market cap of $21.0 billion and is part of the health care sector and health services industry. The stock has a beta of 1.00 and a short float of 1.7% with 1.70 days to cover. Shares are up 40.4% year to date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Aetna as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. 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 64.69% 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, AET should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.2%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
- AETNA INC's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AETNA INC reported lower earnings of $4.78 versus $5.21 in the prior year. This year, the market expects an improvement in earnings ($5.81 versus $4.78).
- You can view the full Aetna Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.