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

  • VAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.6 million.
  • VAR has traded 4,463 shares today.
  • VAR is trading at a new lifetime high.

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More details on VAR:

Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions in the United States. The company operates in two segments, Oncology Systems and Imaging Components. VAR has a PE ratio of 24.7. Currently there are 4 analysts that rate Varian Medical Systems a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Varian Medical Systems has been 700,800 shares per day over the past 30 days. Varian Medical Systems has a market cap of $9.5 billion and is part of the health care sector and health services industry. The stock has a beta of 0.44 and a short float of 5.1% with 9.55 days to cover. Shares are up 10.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Varian Medical Systems 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, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • VAR's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
  • Net operating cash flow has significantly increased by 82.50% to $78.95 million when compared to the same quarter last year. In addition, VARIAN MEDICAL SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -7.35%.
  • 46.63% is the gross profit margin for VARIAN MEDICAL SYSTEMS INC which we consider to be strong. 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 12.64% trails the industry average.

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