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

  • CYBX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.1 million.
  • CYBX has traded 357,833 shares today.
  • CYBX is trading at a new lifetime high.

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More details on CYBX:

Cyberonics, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of implantable medical devices to hospitals and ambulatory surgery centers. CYBX has a PE ratio of 36.6. Currently there are 6 analysts that rate Cyberonics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Cyberonics has been 198,300 shares per day over the past 30 days. Cyberonics has a market cap of $1.7 billion and is part of the health care sector and health services industry. The stock has a beta of 0.57 and a short float of 8.2% with 9.46 days to cover. Shares are up 16.9% year to date as of the close of trading on Tuesday.

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 Cyberonics 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, notable return on equity, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.3%. Since the same quarter one year prior, revenues rose by 14.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CYBX 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 6.38, which clearly demonstrates the ability to cover short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, CYBERONICS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • CYBERONICS INC has improved earnings per share by 6.9% 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, CYBERONICS INC increased its bottom line by earning $1.65 versus $1.28 in the prior year. This year, the market expects an improvement in earnings ($1.99 versus $1.65).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income increased by 7.4% when compared to the same quarter one year prior, going from $8.08 million to $8.67 million.

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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