Omnicare (OCR) Reaches New Lifetime High Today

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

  • OCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $201.6 million.
  • OCR has traded 6,445 shares today.
  • OCR is trading at a new lifetime high.

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More details on OCR:

Omnicare, Inc. operates as a healthcare services company that specializes in the management of pharmaceutical care in the United States. The stock currently has a dividend yield of 1%. OCR has a PE ratio of 47.3. Currently there are 5 analysts that rate Omnicare a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Omnicare has been 1.0 million shares per day over the past 30 days. Omnicare has a market cap of $8.7 billion and is part of the health care sector and health services industry. The stock has a beta of 0.65 and a short float of 5.9% with 2.51 days to cover. Shares are up 23.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Omnicare as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, good cash flow from operations, solid stock price performance 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:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 92.8% when compared to the same quarter one year prior, rising from -$83.70 million to -$6.05 million.
  • OCR's revenue growth trails the industry average of 18.9%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 1006.68% to $137.17 million when compared to the same quarter last year. In addition, OMNICARE INC has also vastly surpassed the industry average cash flow growth rate of 54.82%.
  • Compared to its closing price of one year ago, OCR's share price has jumped by 48.43%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • OMNICARE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OMNICARE INC increased its bottom line by earning $1.73 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($4.16 versus $1.73).

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