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.

Trade-Ideas LLC identified

HD Supply Holdings

(

HDS

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

  • HDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $92.5 million.
  • HDS has traded 21,211 shares today.
  • HDS is trading at a new lifetime high.

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More details on HDS:

HD Supply Holdings, Inc. operates as an industrial distribution company in North America. It operates in four segments: Facilities Maintenance, Waterworks, Power Solutions, and Construction & Industrial - White Cap. Currently there are 10 analysts that rate HD Supply Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for HD Supply Holdings has been 1.9 million shares per day over the past 30 days. HD Supply has a market cap of $5.9 billion and is part of the services sector and wholesale industry. Shares are up 0.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates HD Supply Holdings as a

sell

. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:

  • The gross profit margin for HD SUPPLY HOLDINGS INC is currently lower than what is desirable, coming in at 29.22%. Regardless of HDS'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 2.41% trails the industry average.
  • Net operating cash flow has remained constant at $67.00 million with no significant change when compared to the same quarter last year. Despite stable cash flow, HD SUPPLY HOLDINGS INC's cash flow growth rate is still lower than the industry average growth rate of 22.46%.
  • The stock has risen over the past year and, it has performed in line with the S&P 500 thus far. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • HD SUPPLY HOLDINGS INC has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.94 versus -$1.15).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Trading Companies & Distributors industry average. The net income increased by 17.6% when compared to the same quarter one year prior, going from $51.00 million to $60.00 million.

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