New Lifetime High For Mednax (MD)

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

  • MD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.5 million.
  • MD has traded 116,278 shares today.
  • MD is trading at a new lifetime high.

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More details on MD:

MEDNAX, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric subspecialties, and anesthesia care physician services in the United States and Puerto Rico. MD has a PE ratio of 19.5. Currently there are 7 analysts that rate Mednax a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Mednax has been 179,800 shares per day over the past 30 days. Mednax has a market cap of $5.0 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 9.8% with 19.91 days to cover. Shares are up 25.3% 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 Mednax 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, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 17.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MD's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
  • 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 43.63% 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, MD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MEDNAX INC has improved earnings per share by 12.3% 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, MEDNAX INC increased its bottom line by earning $4.84 versus $4.47 in the prior year. This year, the market expects an improvement in earnings ($5.48 versus $4.84).
  • Net operating cash flow has slightly increased to $127.24 million or 8.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -26.94%.

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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