Parexel International (PRXL) Hits New Lifetime High

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

  • PRXL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.8 million.
  • PRXL has traded 83,414 shares today.
  • PRXL is trading at a new lifetime high.

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More details on PRXL:

PAREXEL International Corporation is a biopharmaceutical outsourcing services company. PRXL has a PE ratio of 27.4. Currently there are 8 analysts that rate Parexel International a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Parexel International has been 497,700 shares per day over the past 30 days. Parexel International has a market cap of $3.4 billion and is part of the health care sector and health services industry. The stock has a beta of 1.20 and a short float of 6% with 7.07 days to cover. Shares are up 37.5% 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 Parexel International as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • PAREXEL INTERNATIONAL CORP has improved earnings per share by 34.6% 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, PAREXEL INTERNATIONAL CORP increased its bottom line by earning $2.24 versus $1.63 in the prior year. This year, the market expects an improvement in earnings ($2.69 versus $2.24).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Life Sciences Tools & Services industry. The net income increased by 33.4% when compared to the same quarter one year prior, rising from $30.04 million to $40.07 million.
  • PRXL's revenue growth trails the industry average of 21.7%. Since the same quarter one year prior, revenues rose by 11.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.60, 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 1.31, which illustrates the ability to avoid short-term cash problems.

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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