Forest Laboratories (FRX) Reaches New Lifetime High Today

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

  • FRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $769.2 million.
  • FRX has traded 2,460 shares today.
  • FRX is trading at a new lifetime high.

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More details on FRX:

Forest Laboratories, Inc. develops, manufactures, and sells branded forms of ethical drug products in the United States and Europe. FRX has a PE ratio of 167.8. Currently there are 10 analysts that rate Forest Laboratories a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for Forest Laboratories has been 3.2 million shares per day over the past 30 days. Forest has a market cap of $26.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.59 and a short float of 1.3% with 0.34 days to cover. Shares are up 61.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Forest Laboratories as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 22.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FRX's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.26, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 111.7% when compared to the same quarter one year prior, rising from -$153.61 million to $17.96 million.
  • Net operating cash flow has significantly increased by 868.95% to $202.93 million when compared to the same quarter last year. In addition, FOREST LABORATORIES has also vastly surpassed the industry average cash flow growth rate of -43.31%.
  • The gross profit margin for FOREST LABORATORIES is currently very high, coming in at 84.89%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FRX's net profit margin of 2.04% significantly trails 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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