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

  • CFN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $125.3 million.
  • CFN has traded 28,663 shares today.
  • CFN is trading at a new lifetime high.

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More details on CFN:

CareFusion Corporation, a medical technology company, provides various healthcare products and services. It offers product lines in the areas of medication management, infection prevention, operating room effectiveness, and respiratory care. CFN has a PE ratio of 29.3. Currently there are no analysts that rate CareFusion a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for CareFusion has been 3.3 million shares per day over the past 30 days. CareFusion has a market cap of $11.8 billion and is part of the health care sector and health services industry. The stock has a beta of 1.11 and a short float of 1.1% with 0.97 days to cover. Shares are up 45.1% 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 CareFusion as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • CFN's revenue growth has slightly outpaced the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 11.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 47.62% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CFN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CAREFUSION CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CAREFUSION CORP increased its bottom line by earning $1.96 versus $1.73 in the prior year. This year, the market expects an improvement in earnings ($2.87 versus $1.96).
  • Despite currently having a low debt-to-equity ratio of 0.37, 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 3.94 is very high and demonstrates very strong liquidity.

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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