Haemonetics (HAE) Is Today's Strong And Under The Radar Stock

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

  • HAE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.8 million.
  • HAE is making at least a new 3-day high.
  • HAE has a PE ratio of 133.
  • HAE is mentioned 0.48 times per day on StockTwits.
  • HAE has not yet been mentioned on StockTwits today.
  • HAE is currently in the upper 20% of its 1-year range.
  • HAE is in the upper 35% of its 20-day range.
  • HAE is in the upper 45% of its 5-day range.
  • HAE 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 HAE:

Haemonetics Corporation designs, manufactures, and markets blood management solutions. The company operates through North America Plasma, North America Blood Center and Hospital, Europe, Asia Pacific, and Japan segments. HAE has a PE ratio of 133. Currently there is 1 analyst that rates Haemonetics a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Haemonetics has been 292,900 shares per day over the past 30 days. Haemonetics has a market cap of $2.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.85 and a short float of 5.9% with 12.87 days to cover. Shares are up 14% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Haemonetics as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, HAE has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $55.31 million or 7.44% when compared to the same quarter last year. In addition, HAEMONETICS CORP has also modestly surpassed the industry average cash flow growth rate of 5.22%.
  • The gross profit margin for HAEMONETICS CORP is rather high; currently it is at 58.51%. 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 -1.29% is in-line with the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 128.8% when compared to the same quarter one year ago, falling from $10.18 million to -$2.93 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, HAEMONETICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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