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 Perrigo Company ( PRGO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Perrigo Company as such a stock due to the following factors:
- PRGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $196.5 million.
- PRGO has traded 2.5 million shares today.
- PRGO is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in PRGO with the Ticky from Trade-Ideas. See the FREE profile for PRGO NOW at Trade-Ideas More details on PRGO: Perrigo Company, through its subsidiaries, develops, manufactures, and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, nutritional products, and active pharmaceutical ingredients (API). The stock currently has a dividend yield of 0.3%. PRGO has a PE ratio of 27.5. Currently there are 10 analysts that rate Perrigo Company a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Perrigo Company has been 1.0 million shares per day over the past 30 days. Perrigo has a market cap of $12.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.07 and a short float of 12.6% with 8.49 days to cover. Shares are up 32.5% year to date as of the close of trading on Thursday. 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 Perrigo Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. 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 2.6%. Since the same quarter one year prior, revenues rose by 16.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- PERRIGO CO has improved earnings per share by 9.6% 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, PERRIGO CO increased its bottom line by earning $4.67 versus $4.18 in the prior year. This year, the market expects an improvement in earnings ($6.55 versus $4.67).
- 41.87% is the gross profit margin for PERRIGO CO 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 12.24% trails the industry average.
- PRGO's debt-to-equity ratio of 0.85 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that PRGO's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.92 is high and demonstrates strong liquidity.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, PERRIGO CO's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full Perrigo Company Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.