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

Global Eagle Entertainment

(

ENT

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

  • ENT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.1 million.
  • ENT has traded 393,107 shares today.
  • ENT is trading at a new lifetime high.

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More details on ENT:

Global Eagle Entertainment Inc. provides in-flight video content, e-commerce, and information services for airlines worldwide. Currently there are 2 analysts that rate Global Eagle Entertainment a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Global Eagle Entertainment has been 199,900 shares per day over the past 30 days. Global Eagle Entertainment has a market cap of $475.3 million and is part of the conglomerates sector and conglomerates industry. The stock has a beta of 0.49 and a short float of 5.8% with 2.29 days to cover. Shares are up 23.8% year to date as of the close of trading on Tuesday.

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 Global Eagle Entertainment as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 228.6% when compared to the same quarter one year ago, falling from $4.32 million to -$5.55 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, GLOBAL EAGLE ENTERTAINMENT's return on equity significantly trails that of both the industry average and the S&P 500.
  • GLOBAL EAGLE ENTERTAINMENT has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GLOBAL EAGLE ENTERTAINMENT reported poor results of -$3.20 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings (-$1.05 versus -$3.20).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • ENT's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels.

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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