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Analyst Blog

On Dec 16, Zacks Investment Research upgraded Sharps Compliance Corp. (SMED - Snapshot Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

The upgrade was primarily based on Sharps Compliance’s strong first-quarter 2014 results, which reflected its ongoing initiatives for improving sales and marketing, its strong balance sheet with ample cash flow from operations, and significant growth in its operating income.

The company’s shares reached a new 52-week high of $5.24 on Nov 25, reflecting a 125.0% increase in share prices since the beginning of the year. Sharps Compliance also delivered positive earnings surprises in three of the last four quarters with an average beat of 47.22%.

Sharps Compliance reported fiscal first-quarter 2014 results on Oct 23. Revenues were up 21.7% year over year. The company’s customer billings surged 23.6% to $6.7 million in the quarter, reflecting a positive progress of the business in the quarter. The billings increased in the Sharps Compliance’s Retail, Professional and Home Health Care businesses, partially offset by weak billings in the Core Government market business.

The Zacks Consensus Estimate for fiscal 2014 has increased 87.5% to a loss of 1 cent per share with an upward revision in earnings estimate over the last 60 days.

Other Stocks to Consider

Investors can also consider other stocks in the industry that are performing well right now. These include Fuel-Tech, Inc. (FTEK - Snapshot Report), Donaldson Company, Inc. (DCI - Snapshot Report) and Perma-Fix Environmental Services Inc. (PESI - Snapshot Report). While Fuel-Tech carries a Zacks Rank #1 (Strong Buy), Donaldson Company and Perma-Fix Environmental Services both carry a Zacks Rank #2 (Buy).

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