New Lifetime High Reached By RBC Bearings (ROLL)

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.

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

  • ROLL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.8 million.
  • ROLL has traded 875 shares today.
  • ROLL is trading at a new lifetime high.

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More details on ROLL:

RBC Bearings Incorporated manufactures and markets precision plain, roller, and ball bearings primarily in North America, Europe, Asia, and Latin America. It operates in four segments: Plain Bearings, Roller Bearings, Ball Bearings, and Other. ROLL has a PE ratio of 28.7. Currently there are 3 analysts that rate RBC Bearings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for RBC Bearings has been 100,700 shares per day over the past 30 days. RBC Bearings has a market cap of $1.8 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.94 and a short float of 2.8% with 2.84 days to cover. Shares are up 17.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates RBC Bearings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • ROLL's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 5.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ROLL's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.11, which clearly demonstrates the ability to cover short-term cash needs.
  • RBC BEARINGS INC has improved earnings per share by 9.1% 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, RBC BEARINGS INC increased its bottom line by earning $2.59 versus $2.48 in the prior year. This year, the market expects an improvement in earnings ($2.72 versus $2.59).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Machinery industry average, but is less than that of the S&P 500. The net income increased by 10.1% when compared to the same quarter one year prior, going from $12.76 million to $14.05 million.
  • 42.32% is the gross profit margin for RBC BEARINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.21% is above that of the industry average.

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