Will This Analyst Upgrade Help Stericycle (SRCL) Stock Today?

NEW YORK (TheStreet) -- Robert W. Baird upgraded Stericycle  (SRC)L to "outperform" from "neutral" and set a $140 price target. The firm said the company offers growth at an attractive price. 

The stock was up 1.17% to $116.32 at 9:36 a.m. on Friday.

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Separately, TheStreet Ratings team rates STERICYCLE INC as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate STERICYCLE INC (SRCL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, notable return on equity, growth in earnings per share and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • SRCL's revenue growth has slightly outpaced the industry average of 3.8%. Since the same quarter one year prior, revenues rose by 10.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.77, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
  • 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. Compared to other companies in the Commercial Services & Supplies industry and the overall market, STERICYCLE INC's return on equity exceeds that of both the industry average and the S&P 500.
  • STERICYCLE INC has improved earnings per share by 7.0% 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, STERICYCLE INC increased its bottom line by earning $3.56 versus $3.08 in the prior year. This year, the market expects an improvement in earnings ($4.24 versus $3.56).
  • Net operating cash flow has increased to $144.48 million or 47.16% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.25%.
  • You can view the full analysis from the report here: SRCL 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.

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.

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