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

  • STJ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.5 million.
  • STJ has traded 20,486 shares today.
  • STJ is trading at a new lifetime high.

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More details on STJ:

St. Jude Medical, Inc., together with its subsidiaries, develops, manufactures and distributes cardiovascular medical devices for cardiac rhythm management, cardiovascular, and atrial fibrillation therapy areas worldwide. The stock currently has a dividend yield of 1.6%. STJ has a PE ratio of 21. Currently there are 15 analysts that rate St Jude Medical a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for St Jude Medical has been 1.6 million shares per day over the past 30 days. St Jude Medical has a market cap of $20.9 billion and is part of the health care sector and health services industry. The stock has a beta of 1.54 and a short float of 2.5% with 5.51 days to cover. Shares are up 14.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates St Jude Medical as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, notable return on equity, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • ST JUDE MEDICAL INC has improved earnings per share by 5.8% 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, ST JUDE MEDICAL INC increased its bottom line by earning $3.45 versus $2.50 in the prior year. This year, the market expects an improvement in earnings ($3.95 versus $3.45).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ST JUDE MEDICAL INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • The gross profit margin for ST JUDE MEDICAL INC is currently very high, coming in at 74.80%. Regardless of STJ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, STJ's net profit margin of 19.47% compares favorably to the industry average.

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