ICU Medical (ICUI) Showing Signs Of Being Strong And Under The Radar

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 ICU Medical ( ICUI) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified ICU Medical as such a stock due to the following factors:

  • ICUI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.5 million.
  • ICUI is making at least a new 3-day high.
  • ICUI has a PE ratio of 40.7.
  • ICUI is mentioned 1.68 times per day on StockTwits.
  • ICUI has not yet been mentioned on StockTwits today.
  • ICUI is currently in the upper 20% of its 1-year range.
  • ICUI is in the upper 35% of its 20-day range.
  • ICUI is in the upper 45% of its 5-day range.
  • ICUI is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ICUI:

ICU Medical, Inc. develops, manufactures, and sells medical devices used in infusion therapy, oncology, and critical care applications. It operates in three segments: Infusion Therapy, Critical Care, and Oncology. ICUI has a PE ratio of 40.7. Currently there are 4 analysts that rate ICU Medical a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for ICU Medical has been 113,000 shares per day over the past 30 days. ICU Medical has a market cap of $1.3 billion and is part of the health care sector and health services industry. The stock has a beta of 0.07 and a short float of 10.9% with 5.69 days to cover. Shares are up 33.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ICU Medical as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • ICUI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 12.48, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $19.07 million or 17.09% when compared to the same quarter last year. In addition, ICU MEDICAL INC has also vastly surpassed the industry average cash flow growth rate of -36.03%.
  • The gross profit margin for ICU MEDICAL INC is rather high; currently it is at 55.67%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.29% trails 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, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

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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