Conmed (CNMD) 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.

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

  • CNMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.3 million.
  • CNMD has traded 1,133 shares today.
  • CNMD is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CNMD with the Ticky from Trade-Ideas. See the FREE profile for CNMD NOW at Trade-Ideas

More details on CNMD:

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for minimally invasive procedures and monitoring in the United States, Canada, the United Kingdom, Japan, Australia, and internationally. The stock currently has a dividend yield of 1.5%. CNMD has a PE ratio of 49.1. Currently there are 3 analysts that rate Conmed a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Conmed has been 152,300 shares per day over the past 30 days. Conmed has a market cap of $1.5 billion and is part of the health care sector and health services industry. The stock has a beta of 1.30 and a short float of 4% with 5.23 days to cover. Shares are up 17.9% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Conmed 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, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CNMD has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for CONMED CORP is rather high; currently it is at 53.17%. Regardless of CNMD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CNMD's net profit margin of 3.54% is significantly lower than the industry average.
  • CONMED CORP's earnings per share declined by 25.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CONMED CORP reported lower earnings of $1.16 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $1.16).
  • CNMD, with its decline in revenue, slightly underperformed the industry average of 1.1%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists