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

  • WAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.6 million.
  • WAT has traded 772,007 shares today.
  • WAT is trading at a new lifetime high.

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More details on WAT:

Waters Corporation operates as an analytical instrument manufacturer in the United States and internationally. WAT has a PE ratio of 19.3. Currently there are 6 analysts that rate Waters Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Waters Corporation has been 418,200 shares per day over the past 30 days. Waters has a market cap of $9.1 billion and is part of the health care sector and health services industry. The stock has a beta of 1.05 and a short float of 3.2% with 5.94 days to cover. Shares are up 22.4% year to date as of the close of trading on Wednesday.

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 Waters Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, WAT's share price has jumped by 25.20%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WAT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has slightly increased to $109.02 million or 3.75% when compared to the same quarter last year. In addition, WATERS CORP has also modestly surpassed the industry average cash flow growth rate of -3.92%.
  • The gross profit margin for WATERS CORP is rather high; currently it is at 62.03%. Regardless of WAT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WAT's net profit margin of 19.79% significantly outperformed against the industry.
  • WAT's debt-to-equity ratio of 0.83 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.24 is very high and demonstrates very strong liquidity.
  • WAT, with its decline in revenue, slightly underperformed the industry average of 9.5%. Since the same quarter one year prior, revenues slightly dropped by 0.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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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