ITC Holdings (ITC) Hits New Lifetime High - TheStreet

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

ITC Holdings

(

ITC

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

  • ITC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.8 million.
  • ITC has traded 5,666 shares today.
  • ITC is trading at a new lifetime high.

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More details on ITC:

ITC Holdings Corp., together with its subsidiaries, is engaged in the transmission of electricity in the United States. The stock currently has a dividend yield of 1.7%. ITC has a PE ratio of 23.9. Currently there are 9 analysts that rate ITC Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for ITC Holdings has been 897,200 shares per day over the past 30 days. ITC has a market cap of $6.1 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.07 and a short float of 4.6% with 5.93 days to cover. Shares are up 21% year-to-date as of the close of trading on Wednesday.

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 ITC Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • ITC's revenue growth has slightly outpaced the industry average of 4.5%. Since the same quarter one year prior, revenues rose by 14.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ITC HOLDINGS CORP has improved earnings per share by 13.3% 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, ITC HOLDINGS CORP increased its bottom line by earning $1.47 versus $1.20 in the prior year. This year, the market expects an improvement in earnings ($1.88 versus $1.47).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market, ITC HOLDINGS CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for ITC HOLDINGS CORP is currently very high, coming in at 72.39%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.64% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $150.26 million or 33.13% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.70%.

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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