Trade-Ideas LLC identified

Facebook

(

FB

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

  • FB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.2 billion.
  • FB has traded 4.5 million shares today.
  • FB is trading at a new lifetime high.

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More details on FB:

Facebook, Inc. operates as a social networking company worldwide. It provides a set of development tools and application programming interfaces that enable developers to integrate with Facebook to create mobile and Web applications. FB has a PE ratio of 95. Currently there are 28 analysts that rate Facebook a buy, no analysts rate it a sell, and 1 rates it a hold.

TST Recommends

The average volume for Facebook has been 27.1 million shares per day over the past 30 days. Facebook has a market cap of $214.4 billion and is part of the technology sector and internet industry. The stock has a beta of 0.93 and a short float of 1% with 0.52 days to cover. Shares are up 4.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Facebook 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 its 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:

  • FB's very impressive revenue growth greatly exceeded the industry average of 14.6%. Since the same quarter one year prior, revenues leaped by 51.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FB's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 10.91, which clearly demonstrates the ability to cover short-term cash needs.
  • FACEBOOK 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, FACEBOOK INC increased its bottom line by earning $1.28 versus $1.10 in the prior year. This year, the market expects an improvement in earnings ($2.90 versus $1.28).
  • 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 122.7% when compared to the same quarter one year prior, rising from $701.00 million to $1,561.00 million.
  • The gross profit margin for FACEBOOK INC is currently very high, coming in at 95.19%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.72% is above that of the industry average.

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