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

  • SRCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.2 million.
  • SRCL has traded 210,352 shares today.
  • SRCL is trading at a new lifetime high.

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More details on SRCL:

Stericycle, Inc., together with its subsidiaries, provides regulated waste management and related services. SRCL has a PE ratio of 34.6. Currently there are 10 analysts that rate Stericycle Incorporated a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Stericycle Incorporated has been 279,100 shares per day over the past 30 days. Stericycle has a market cap of $9.8 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.55 and a short float of 1.9% with 6.88 days to cover. Shares are up 22.2% 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 Stericycle Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. 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 7.2%. Since the same quarter one year prior, revenues rose by 12.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
  • STERICYCLE INC has improved earnings per share by 14.1% 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, STERICYCLE INC increased its bottom line by earning $3.08 versus $2.69 in the prior year. This year, the market expects an improvement in earnings ($3.71 versus $3.08).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Services & Supplies industry average, but is less than that of the S&P 500. The net income increased by 15.5% when compared to the same quarter one year prior, going from $67.59 million to $78.04 million.
  • 47.51% is the gross profit margin for STERICYCLE INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.82% is above that of the industry average.

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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