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

  • MWIV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.5 million.
  • MWIV has traded 848 shares today.
  • MWIV is trading at a new lifetime high.

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More details on MWIV:

MWI Veterinary Supply, Inc., together with its subsidiaries, distributes animal health products to veterinarians in the United States and the United Kingdom. MWIV has a PE ratio of 36.5. Currently there are 3 analysts that rate MWI Veterinary Supply a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for MWI Veterinary Supply has been 63,200 shares per day over the past 30 days. MWI Veterinary Supply has a market cap of $2.3 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.06 and a short float of 4.3% with 8.86 days to cover. Shares are up 7.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates MWI Veterinary Supply as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 9.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MWI VETERINARY SUPPLY has improved earnings per share by 13.1% 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, MWI VETERINARY SUPPLY increased its bottom line by earning $4.95 versus $4.23 in the prior year. This year, the market expects an improvement in earnings ($5.61 versus $4.95).
  • The net income growth from the same quarter one year ago has exceeded that of the Health Care Providers & Services industry average, but is less than that of the S&P 500. The net income increased by 12.8% when compared to the same quarter one year prior, going from $12.60 million to $14.22 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 56.86% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • MWIV's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.85 is somewhat weak and could be cause for future problems.

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