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 AmerisourceBergen ( ABC) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified AmerisourceBergen as such a stock due to the following factors:
- ABC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $145.7 million.
- ABC has traded 24,452 shares today.
- ABC is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ABC with the Ticky from Trade-Ideas. See the FREE profile for ABC NOW at Trade-Ideas More details on ABC: AmerisourceBergen Corporation sources and distributes pharmaceutical products to healthcare providers, pharmaceutical and biotech manufacturers, and specialty drug patients in the United States and internationally. The stock currently has a dividend yield of 1.3%. ABC has a PE ratio of 50.1. Currently there are 9 analysts that rate AmerisourceBergen a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for AmerisourceBergen has been 2.0 million shares per day over the past 30 days. AmerisourceBergen has a market cap of $16.5 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.76 and a short float of 2.7% with 3.13 days to cover. Shares are up 4% year-to-date as of the close of trading on Tuesday. 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 AmerisourceBergen as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 16.8%. Since the same quarter one year prior, revenues rose by 38.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 294.6% when compared to the same quarter one year prior, rising from $45.63 million to $180.08 million.
- Net operating cash flow has increased to $1,116.30 million or 13.28% when compared to the same quarter last year. Despite an increase in cash flow, AMERISOURCEBERGEN CORP's cash flow growth rate is still lower than the industry average growth rate of 37.05%.
- Compared to its closing price of one year ago, ABC's share price has jumped by 35.95%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.44 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full AmerisourceBergen 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.