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
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Deluxe as such a stock due to the following factors:
- DLX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.1 million.
- DLX has traded 11,165 shares today.
- DLX is trading at a new lifetime high.
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More details on DLX:
Deluxe Corporation, together with its subsidiaries, provides customized checks and forms, Web-site development and hosting, search engine marketing and optimization, and logo design services to small businesses and financial institutions. The stock currently has a dividend yield of 1.9%. DLX has a PE ratio of 16.2. Currently there are 2 analysts that rate Deluxe a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Deluxe has been 251,300 shares per day over the past 30 days. Deluxe has a market cap of $3.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.57 and a short float of 8.7% with 15.31 days to cover. Shares are up 3.2% year-to-date as of the close of trading on Wednesday.
rates Deluxe as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- DELUXE CORP has improved earnings per share by 28.9% 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, DELUXE CORP increased its bottom line by earning $3.96 versus $3.65 in the prior year. This year, the market expects an improvement in earnings ($4.39 versus $3.96).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Services & Supplies industry average. The net income increased by 26.9% when compared to the same quarter one year prior, rising from $45.72 million to $58.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.86, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- You can view the full Deluxe Ratings Report.