Analysts on TheStreet's team cited the company's revenue growth, solid financial position and reasonable debt levels as reasons for the upgraded outlook.
The Houston-based small cap waste management services provider was recently awarded a blanket purchase agreement (BPA) from the Department of Veterans Affairs.
The BPA allows the VA to purchase services of up to $7 million per year. Sharps Compliance's waste management solutions include medical, pharmaceutical and hazardous material.
"We are very pleased to have this opportunity to work with the VA to assist their Consolidated Mail Outpatient Pharmacy program," President and CEO David P. Tusa said in a statement.
Separately, analysts at Zacks recently upgraded the company's stock to "hold" from "sell". "The company's flagship product, the Sharps Disposal by Mail System, is a cost-effective and easy-to-use solution to dispose of medical waste such as hypodermic needles, lancets and any other medical device or objects used to puncture or lacerate the skins," the financial website said.
TheStreet's chartist, Bruce Kamich, commented on the company's prospects today, saying that the stock's chart performance justifies TheStreet's ratings upgrade.
"There is a strong and rising On-Balance-Volume (OBV) line. The trend following Moving Average Convergence Divergence (MACD) oscillator has turned up and is crossing the zero line, telling us that we are in an uptrend," Kamich said.
"SMED is likely to trade sideways a while longer before making another upside attempt, so buyers should take their time and use available weakness toward $8 for purchases," he concluded.
Click here to read Kamich's thoughts on Sharps Compliance.