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 Edwards Life ( EW) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Edwards Life as such a stock due to the following factors:
- EW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $111.8 million.
- EW is down 3.9% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in EW with the Ticky from Trade-Ideas. See the FREE profile for EW NOW at Trade-Ideas More details on EW: Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. EW has a PE ratio of 18.6. Currently there are 6 analysts that rate Edwards Life a buy, 1 analyst rates it a sell, and 7 rate it a hold. The average volume for Edwards Life has been 1.4 million shares per day over the past 30 days. Edwards Life has a market cap of $7.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.73 and a short float of 7.1% with 3.41 days to cover. Shares are down 1% year-to-date as of the close of trading on Friday. 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 Edwards Life as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 24.3%. Since the same quarter one year prior, revenues rose by 10.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- EDWARDS LIFESCIENCES CORP has improved earnings per share by 17.2% 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. This trend suggests that the performance of the business is improving. During the past fiscal year, EDWARDS LIFESCIENCES CORP increased its bottom line by earning $2.47 versus $1.97 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.47).
- Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.24 is very high and demonstrates very strong liquidity.
- The gross profit margin for EDWARDS LIFESCIENCES CORP is currently very high, coming in at 77.56%. Regardless of EW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EW's net profit margin of 15.51% compares favorably to the industry average.
- EW's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.30%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full Edwards Life 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.