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Trade-Ideas LLC identified

Open Text

(

OTEX

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

  • OTEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.4 million.
  • OTEX has traded 13,904 shares today.
  • OTEX is trading at a new lifetime high.

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More details on OTEX:

Open Text Corporation provides a suite of software products and services that assist organizations in finding, utilizing, and sharing business information from various devices. The stock currently has a dividend yield of 1.5%. OTEX has a PE ratio of 28. Currently there are 8 analysts that rate Open Text a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Recommends

The average volume for Open Text has been 291,600 shares per day over the past 30 days. Open Text has a market cap of $7.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.42 and a short float of 2.4% with 9.77 days to cover. Shares are up 27.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Open Text as a

buy

. 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, reasonable valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 159.09% and other important driving factors, this stock has surged by 37.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OTEX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • OPEN TEXT CORP 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, OPEN TEXT CORP increased its bottom line by earning $1.91 versus $1.81 in the prior year. This year, the market expects an improvement in earnings ($3.60 versus $1.91).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 159.7% when compared to the same quarter one year prior, rising from $26.61 million to $69.12 million.
  • Net operating cash flow has increased to $189.94 million or 32.72% when compared to the same quarter last year. In addition, OPEN TEXT CORP has also modestly surpassed the industry average cash flow growth rate of 24.78%.

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