Trade-Ideas: Prestige Brands Holdings (PBH) Is Today's New Lifetime High 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 Prestige Brands Holdings ( PBH) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Prestige Brands Holdings as such a stock due to the following factors:

  • PBH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.9 million.
  • PBH has traded 2,641 shares today.
  • PBH is trading at a new lifetime high.

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More details on PBH:

Prestige Brands Holdings, Inc., through its subsidiaries, markets, sells, and distributes over-the-counter (OTC) healthcare and household cleaning products in North America, Australia, and internationally. PBH has a PE ratio of 32. Currently there is 1 analyst that rates Prestige Brands Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Prestige Brands Holdings has been 381,500 shares per day over the past 30 days. Prestige has a market cap of $2.4 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.48 and a short float of 5.3% with 9.65 days to cover. Shares are up 29.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Prestige Brands Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and expanding profit margins. 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 greatly exceeded the industry average of 2.1%. Since the same quarter one year prior, revenues rose by 32.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 50.00% and other important driving factors, this stock has surged by 30.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PBH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • PRESTIGE BRANDS HOLDINGS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PRESTIGE BRANDS HOLDINGS increased its bottom line by earning $1.48 versus $1.39 in the prior year. This year, the market expects an improvement in earnings ($2.07 versus $1.48).
  • Net operating cash flow has significantly increased by 69.62% to $52.11 million when compared to the same quarter last year. In addition, PRESTIGE BRANDS HOLDINGS has also vastly surpassed the industry average cash flow growth rate of -23.98%.
  • The gross profit margin for PRESTIGE BRANDS HOLDINGS is rather high; currently it is at 57.92%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, PBH's net profit margin of 12.50% significantly trails the industry average.

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