New Lifetime High Today: LogMeIn (LOGM)
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
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified LogMeIn as such a stock due to the following factors:
- LOGM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.9 million.
- LOGM has traded 4,006 shares today.
- LOGM is trading at a new lifetime high.
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More details on LOGM:
LogMeIn, Inc. provides cloud-based services for individuals and businesses to securely connect to their workplace, colleagues, and customers. LOGM has a PE ratio of 178.0. Currently there are 4 analysts that rate LogMeIn a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for LogMeIn has been 240,400 shares per day over the past 30 days. LogMeIn has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.41 and a short float of 17% with 12.07 days to cover. Shares are up 14% year-to-date as of the close of trading on Thursday.
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Analysis:
rates LogMeIn as a
. 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 solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 32.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- LOGM 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, LOGM has a quick ratio of 1.60, which demonstrates the ability of the company to cover short-term liquidity needs.
- LOGMEIN INC reported significant earnings per share improvement 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, LOGMEIN INC turned its bottom line around by earning $0.31 versus -$0.32 in the prior year. This year, the market expects an improvement in earnings ($1.29 versus $0.31).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 821.8% when compared to the same quarter one year prior, rising from -$0.46 million to $3.31 million.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full LogMeIn Ratings Report.
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