Techne Corporation (TECH) Hits New Lifetime High Today

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

  • TECH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.9 million.
  • TECH has traded 101,246 shares today.
  • TECH is trading at a new lifetime high.

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More details on TECH:

Techne Corporation develops, manufactures, and sells biotechnology products and clinical diagnostic controls worldwide. It operates in two segments, Biotechnology and Clinical Controls. The stock currently has a dividend yield of 1.5%. TECH has a PE ratio of 25.9. Currently there are 2 analysts that rate Techne Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Techne Corporation has been 125,600 shares per day over the past 30 days. Techne has a market cap of $2.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.55 and a short float of 1.8% with 2.15 days to cover. Shares are up 15.8% 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 Techne Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share 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 stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 1.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TECH has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 11.63, which clearly demonstrates the ability to cover short-term cash needs.
  • TECHNE CORP's earnings per share improvement from the most recent quarter was slightly positive. 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, TECHNE CORP increased its bottom line by earning $3.06 versus $3.04 in the prior year. This year, the market expects an improvement in earnings ($3.40 versus $3.06).
  • The gross profit margin for TECHNE CORP is currently very high, coming in at 77.45%. Regardless of TECH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TECH's net profit margin of 35.74% significantly outperformed against the industry.

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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