Computer Task Group (NASDAQ: CTGX) is rated at BUY with a grade of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 27.5% when compared to the same quarter one year prior, rising from $2.99 million to $3.81 million.
- COMPUTER TASK GROUP INC has improved earnings per share by 27.8% 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, COMPUTER TASK GROUP INC increased its bottom line by earning $0.72 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus $0.72).
- Powered by its strong earnings growth of 27.77% and other important driving factors, this stock has surged by 34.78% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- CTGX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, CTGX has a quick ratio of 2.18, which demonstrates the ability of the company to cover short-term liquidity needs.
Computer Task Group, Incorporated operates as an information technology (IT) solutions and staffing company primarily in North America and Europe.You can view the full Computer Task Group Ratings Report or get investment ideas from our investment research center.