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

  • HSIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.7 million.
  • HSIC has traded 211,276 shares today.
  • HSIC is trading at a new lifetime high.

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More details on HSIC:

Henry Schein, Inc. distributes health care products and services primarily to office-based dental, medical, and animal health care practitioners. It operates in two segments, Health Care Distribution and Technology and Value-Added Services. HSIC has a PE ratio of 22.6. Currently there are 7 analysts that rate Henry Schein a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Henry Schein has been 376,400 shares per day over the past 30 days. Henry Schein has a market cap of $9.0 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.00 and a short float of 2.1% with 5.04 days to cover. Shares are up 29.4% year to date as of the close of trading on Friday.

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 Henry Schein as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • HSIC's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 8.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SCHEIN (HENRY) INC has improved earnings per share by 13.9% 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, SCHEIN (HENRY) INC increased its bottom line by earning $4.31 versus $3.97 in the prior year. This year, the market expects an improvement in earnings ($4.89 versus $4.31).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, SCHEIN (HENRY) INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 53.95% to $274.80 million when compared to the same quarter last year. In addition, SCHEIN (HENRY) INC has also vastly surpassed the industry average cash flow growth rate of -26.94%.
  • 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 38.47% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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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