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 Edwards Lifesciences ( EW) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Edwards Lifesciences as such a stock due to the following factors:
- EW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.8 million.
- EW is up 4% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in EW with the Ticky from Trade-Ideas. See the FREE profile for EW NOW at Trade-Ideas More details on EW: Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. EW has a PE ratio of 28.9. Currently there are 10 analysts that rate Edwards Lifesciences a buy, no analysts rate it a sell, and 5 rate it a hold. The average volume for Edwards Lifesciences has been 1.2 million shares per day over the past 30 days. Edwards Lifesciences has a market cap of $8.7 billion and is part of the health care sector and health services industry. The stock has a beta of 0.54 and a short float of 5.2% with 4.20 days to cover. Shares are up 19.2% 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 Edwards Lifesciences as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- EW's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues slightly increased by 5.2%. 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.
- Net operating cash flow has significantly increased by 59.10% to $138.90 million when compared to the same quarter last year. In addition, EDWARDS LIFESCIENCES CORP has also vastly surpassed the industry average cash flow growth rate of 7.50%.
- Despite currently having a low debt-to-equity ratio of 0.54, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.19 is very high and demonstrates very strong liquidity.
- The gross profit margin for EDWARDS LIFESCIENCES CORP is currently very high, coming in at 75.17%. Regardless of EW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EW's net profit margin of 11.54% compares favorably to the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's 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 the other strengths this company displays justify these higher price levels.
- You can view the full Edwards Lifesciences 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.