ICU Medical (ICUI) Showing Signs Of Being Strong And Under The Radar

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 ICU Medical ( ICUI) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified ICU Medical as such a stock due to the following factors:

  • ICUI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.8 million.
  • ICUI is making at least a new 3-day high.
  • ICUI has a PE ratio of 52.
  • ICUI is mentioned 1.29 times per day on StockTwits.
  • ICUI has not yet been mentioned on StockTwits today.
  • ICUI is currently in the upper 20% of its 1-year range.
  • ICUI is in the upper 35% of its 20-day range.
  • ICUI is in the upper 45% of its 5-day range.
  • ICUI is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ICUI:

ICU Medical, Inc. develops, manufactures, and sells medical devices used in infusion therapy, oncology, and critical care applications worldwide. ICUI has a PE ratio of 52. Currently there are 4 analysts that rate ICU Medical a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for ICU Medical has been 122,700 shares per day over the past 30 days. ICU Medical 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 0.30 and a short float of 6.6% with 5.39 days to cover. Shares are up 18.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ICU Medical 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, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ICUI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 12.08, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has slightly increased to $13.25 million or 4.22% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.82%.
  • The gross profit margin for ICU MEDICAL INC is rather high; currently it is at 57.86%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ICUI's net profit margin of 11.88% significantly trails the industry average.
  • Powered by its strong earnings growth of 39.53% and other important driving factors, this stock has surged by 61.71% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.

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