- 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 41.18% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- PERKINELMER INC has improved earnings per share by 7.1% 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, PERKINELMER INC increased its bottom line by earning $1.48 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($2.46 versus $1.48).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Life Sciences Tools & Services industry average. The net income increased by 6.2% when compared to the same quarter one year prior, going from $32.22 million to $34.22 million.
- PKI's revenue growth trails the industry average of 21.6%. Since the same quarter one year prior, revenues slightly increased by 5.1%. 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, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash problems.
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. The Health Care sector as a whole closed the day down 1.0% versus the S&P 500, which was down 0.1%. Laggards within the Health Care sector included ImmuCell ( ICCC), down 3.3%, Allied Healthcare Products ( AHPI), down 2.9%, SunLink Health Systems ( SSY), down 4.9%, Pro-Dex ( PDEX), down 4.7% and Vision-Sciences ( VSCI), down 1.9%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: PerkinElmer ( PKI) is one of the companies that pushed the Health Care sector lower today. PerkinElmer was down $1.80 (3.9%) to $44.42 on heavy volume. Throughout the day, 2,397,646 shares of PerkinElmer exchanged hands as compared to its average daily volume of 691,200 shares. The stock ranged in price between $43.06-$44.84 after having opened the day at $44.29 as compared to the previous trading day's close of $46.22. PerkinElmer, Inc. provides products, services, and solutions to the diagnostics, research, environmental, industrial, and laboratory services markets worldwide. The company operates through two segments, Human Health and Environmental Health. PerkinElmer has a market cap of $5.3 billion and is part of the health services industry. Shares are up 12.1% year-to-date as of the close of trading on Thursday. Currently there are 12 analysts who rate PerkinElmer a buy, no analysts rate it a sell, and 2 rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates PerkinElmer as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from TheStreet Ratings analysis on PKI go as follows: