Trade-Ideas: Portfolio Recovery Associates (PRAA) 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 or Stephanie Link.Trade-Ideas LLC identified Portfolio Recovery Associates (PRAA) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Portfolio Recovery Associates as such a stock due to the following factors:
- PRAA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.5 million.
- PRAA has traded 437,774 shares today.
- PRAA is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in PRAA with the Ticky from Trade-Ideas. See the FREE profile for PRAA NOW at Trade-IdeasMore details on PRAA: Portfolio Recovery Associates, Inc., a financial and business service company, engages in the purchase, collection, and management of portfolios of defaulted consumer receivables in the United States and the United Kingdom. PRAA has a PE ratio of 19.0. Currently there are 5 analysts that rate Portfolio Recovery Associates a buy, no analysts rate it a sell, and 2 rate it a hold.The average volume for Portfolio Recovery Associates has been 489,800 shares per day over the past 30 days. Portfolio Recovery Associates has a market cap of $2.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.23 and a short float of 15% with 16.50 days to cover. Shares are up 57.6% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Portfolio Recovery Associates as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 23.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels.
- PORTFOLIO RECOVRY ASSOC INC has improved earnings per share by 36.9% 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, PORTFOLIO RECOVRY ASSOC INC increased its bottom line by earning $2.47 versus $1.95 in the prior year. This year, the market expects an improvement in earnings ($3.30 versus $2.47).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Consumer Finance industry average. The net income increased by 36.2% when compared to the same quarter one year prior, rising from $32.02 million to $43.60 million.
- 42.28% is the gross profit margin for PORTFOLIO RECOVRY ASSOC INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.82% is above that of the industry average.
- You can view the full Portfolio Recovery Associates Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV