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

Global Eagle Entertainment

(

ENT

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Global Eagle Entertainment as such a stock due to the following factors:

  • ENT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.0 million.
  • ENT has traded 529,187 shares today.
  • ENT is trading at a new lifetime high.

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More details on ENT:

Global Eagle Entertainment Inc. provides in-flight video content, e-commerce, and information services for airlines worldwide. Currently there are 2 analysts that rate Global Eagle Entertainment a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Global Eagle Entertainment has been 291,300 shares per day over the past 30 days. Global Eagle Entertainment has a market cap of $546.5 million and is part of the conglomerates sector and conglomerates industry. The stock has a beta of 0.49 and a short float of 5.8% with 2.25 days to cover. Shares are up 48.6% year to date as of the close of trading on Tuesday.

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 Global Eagle Entertainment as a

hold

. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • ENT's very impressive revenue growth greatly exceeded the industry average of 9.2%. Since the same quarter one year prior, revenues leaped by 286.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although ENT's debt-to-equity ratio of 0.05 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
  • GLOBAL EAGLE ENTERTAINMENT reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GLOBAL EAGLE ENTERTAINMENT reported poor results of -$4.37 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings (-$1.03 versus -$4.37).
  • The gross profit margin for GLOBAL EAGLE ENTERTAINMENT is currently lower than what is desirable, coming in at 32.79%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, ENT's net profit margin of -7.45% significantly underperformed when compared to the industry average.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, GLOBAL EAGLE ENTERTAINMENT's return on equity significantly trails that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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