New Lifetime High Reached: Precision Castparts (PCP)

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

  • PCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $158.7 million.
  • PCP has traded 174,942 shares today.
  • PCP is trading at a new lifetime high.

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More details on PCP:

Precision Castparts Corp. manufactures metal components and products worldwide. The stock currently has a dividend yield of 0%. PCP has a PE ratio of 24.5. Currently there are 13 analysts that rate Precision Castparts a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Precision Castparts has been 586,700 shares per day over the past 30 days. Precision Castparts has a market cap of $38.9 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.33 and a short float of 0.9% with 2.36 days to cover. Shares are up 41.4% year-to-date as of the close of trading on Monday.

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 Precision Castparts 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 22.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.34, 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 1.16, which illustrates the ability to avoid short-term cash problems.
  • PRECISION CASTPARTS CORP has improved earnings per share by 27.8% 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, PRECISION CASTPARTS CORP increased its bottom line by earning $9.75 versus $8.45 in the prior year. This year, the market expects an improvement in earnings ($12.14 versus $9.75).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 27.4% when compared to the same quarter one year prior, rising from $332.70 million to $424.00 million.
  • 37.04% is the gross profit margin for PRECISION CASTPARTS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.95% significantly outperformed against 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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