Trade-Ideas: United Therapeutics Corporation (UTHR) Is Today's New Lifetime High Stock

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 United Therapeutics Corporation ( UTHR) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified United Therapeutics Corporation as such a stock due to the following factors:

  • UTHR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.0 million.
  • UTHR has traded 634,590 shares today.
  • UTHR is trading at a new lifetime high.

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More details on UTHR:

United Therapeutics Corporation, a biotechnology company, focuses on the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening conditions worldwide. UTHR has a PE ratio of 12.7. Currently there are 3 analysts that rate United Therapeutics Corporation a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for United Therapeutics Corporation has been 497,600 shares per day over the past 30 days. United has a market cap of $3.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.65 and a short float of 15.9% with 17.93 days to cover. Shares are up 41.8% year to date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates United Therapeutics Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 24.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • UTHR's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, UTHR has a quick ratio of 2.01, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 33.08% 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, UTHR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • UNITED THERAPEUTICS CORP has improved earnings per share by 13.4% 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 two years. We feel that this trend should continue. During the past fiscal year, UNITED THERAPEUTICS CORP increased its bottom line by earning $5.69 versus $3.57 in the prior year. This year, the market expects an improvement in earnings ($6.08 versus $5.69).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Biotechnology industry average. The net income increased by 10.4% when compared to the same quarter one year prior, going from $72.32 million to $79.86 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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