New Lifetime High For Mednax (MD)

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

  • MD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.8 million.
  • MD has traded 2,024 shares today.
  • MD is trading at a new lifetime high.

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More details on MD:

MEDNAX, Inc., together with its subsidiaries, provides newborn, maternal-fetal, pediatric subspecialties, and anesthesia care physician services in the United States and Puerto Rico. MD has a PE ratio of 19.7. Currently there are 6 analysts that rate Mednax a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Mednax has been 552,300 shares per day over the past 30 days. Mednax has a market cap of $5.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.88 and a short float of 8.6% with 10.63 days to cover. Shares are up 3.6% 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 Mednax as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • MD's revenue growth has slightly outpaced the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 20.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 28.61% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MEDNAX INC has improved earnings per share by 18.2% 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. During the past fiscal year, MEDNAX INC increased its bottom line by earning $2.78 versus $2.42 in the prior year. This year, the market expects an improvement in earnings ($3.14 versus $2.78).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Providers & Services industry average. The net income increased by 19.5% when compared to the same quarter one year prior, going from $66.10 million to $78.97 million.
  • 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. When compared to other companies in the Health Care Providers & Services industry and the overall market, MEDNAX INC's return on equity is below that of both the industry average and the S&P 500.

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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