New Lifetime High Today: Air Methods (AIRM)

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

  • AIRM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.5 million.
  • AIRM has traded 175,570 shares today.
  • AIRM is trading at a new lifetime high.

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More details on AIRM:

Air Methods Corporation, together with its subsidiaries, provides air medical emergency transport services and systems in the United States. The company operates in the Air Medical Services (AMS), Tourism, and United Rotorcraft (UR) segments. AIRM has a PE ratio of 26.8. Currently there are 3 analysts that rate Air Methods a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Air Methods has been 381,300 shares per day over the past 30 days. Air Methods has a market cap of $2.1 billion and is part of the services sector and transportation industry. The stock has a beta of 1.10 and a short float of 28.5% with 21.75 days to cover. Shares are down 9% year-to-date as of the close of trading on Wednesday.

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 Air Methods as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • AIRM's revenue growth has slightly outpaced the industry average of 21.2%. Since the same quarter one year prior, revenues rose by 24.5%. Growth in the company's revenue appears to have helped boost the 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 291.4% when compared to the same quarter one year prior, rising from -$5.69 million to $10.89 million.
  • Net operating cash flow has slightly increased to $15.10 million or 2.54% when compared to the same quarter last year. In addition, AIR METHODS CORP has also modestly surpassed the industry average cash flow growth rate of 1.11%.
  • Powered by its strong earnings growth of 286.66% and other important driving factors, this stock has surged by 49.59% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • AIR METHODS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AIR METHODS CORP reported lower earnings of $1.54 versus $2.40 in the prior year. This year, the market expects an improvement in earnings ($2.67 versus $1.54).

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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