Pentair (PNR) Hits New Lifetime High

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

  • PNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $96.7 million.
  • PNR has traded 729,093 shares today.
  • PNR is trading at a new lifetime high.

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More details on PNR:

Pentair Ltd. delivers products, services, and solutions for water and other fluids, thermal management, and equipment protection in the United States, Europe, Asia, and other regions. The stock currently has a dividend yield of 1.5%. Currently there are 7 analysts that rate Pentair a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Pentair has been 839,200 shares per day over the past 30 days. Pentair has a market cap of $13.0 billion and is part of the industrial goods sector and industrial industry. Shares are up 32.4% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pentair 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, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • PNR's very impressive revenue growth greatly exceeded the industry average of 17.6%. Since the same quarter one year prior, revenues leaped by 108.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.00, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 114.5% when compared to the same quarter one year prior, rising from $71.83 million to $154.10 million.
  • PENTAIR LTD has improved earnings per share by 5.6% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, PENTAIR LTD's EPS of $0.33 remained unchanged from the prior years' EPS of $0.33. This year, the market expects an improvement in earnings ($3.22 versus $0.33).
  • 38.29% is the gross profit margin for PENTAIR LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.84% trails 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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