New Lifetime High For On Assignment (ASGN) - TheStreet

Trade-Ideas LLC identified

On Assignment

(

ASGN

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

  • ASGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.6 million.
  • ASGN has traded 1,525 shares today.
  • ASGN is trading at a new lifetime high.

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More details on ASGN:

On Assignment, Inc. provides short- and long-term placement of contract, contract-to-hire, and direct hire professionals in the United States, Europe, Canada, Australia, and New Zealand. The company operates in four segments: Apex, Oxford, Physician, and Life Sciences Europe. ASGN has a PE ratio of 3. Currently there are 7 analysts that rate On Assignment a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for On Assignment has been 335,600 shares per day over the past 30 days. On Assignment has a market cap of $2.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.85 and a short float of 3.3% with 4.62 days to cover. Shares are up 21.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates On Assignment as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 11.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, ASGN's share price has jumped by 40.60%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • ON ASSIGNMENT INC's earnings per share declined by 25.0% 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, ON ASSIGNMENT INC increased its bottom line by earning $1.43 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($2.54 versus $1.43).
  • Net operating cash flow has increased to $32.48 million or 10.72% when compared to the same quarter last year. Despite an increase in cash flow, ON ASSIGNMENT INC's average is still marginally south of the industry average growth rate of 18.51%.
  • The gross profit margin for ON ASSIGNMENT INC is currently lower than what is desirable, coming in at 33.53%. Regardless of ASGN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.93% trails the industry average.

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