New Lifetime High Today: Illumina (ILMN)

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

  • ILMN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $307.7 million.
  • ILMN has traded 25,077 shares today.
  • ILMN is trading at a new lifetime high.

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More details on ILMN:

Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for the analysis of genetic variation and biological function in North America, Europe, Latin America, the Asia-Pacific, the Middle East, and South Africa. ILMN has a PE ratio of 88.3. Currently there are 7 analysts that rate Illumina a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Illumina has been 1.7 million shares per day over the past 30 days. Illumina has a market cap of $20.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.73 and a short float of 26.6% with 13.19 days to cover. Shares are up 43.7% year-to-date as of the close of trading on Thursday.

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 Illumina 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 12.9%. Since the same quarter one year prior, revenues rose by 25.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.36, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ILLUMINA INC is currently very high, coming in at 75.48%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.82% is above that of the industry average.
  • Net operating cash flow has significantly increased by 60.80% to $126.84 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.33%.
  • 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 229.11% 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.

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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