Trade-Ideas LLC identified

Installed Building Products

(

IBP

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

  • IBP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • IBP has traded 47,922 shares today.
  • IBP is trading at a new lifetime high.

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More details on IBP:

Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, garage doors, rain gutters, shower doors, closet shelving and mirrors, and other products in the continental United States. IBP has a PE ratio of 31. Currently there are 4 analysts that rate Installed Building Products a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Installed Building Products has been 187,400 shares per day over the past 30 days. Installed Building has a market cap of $961.6 million and is part of the industrial goods sector and materials & construction industry. Shares are up 25.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Installed Building Products as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including premium valuation, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 7.0%. Since the same quarter one year prior, revenues rose by 47.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • INSTALLED BLDG PRODUCTS 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. This trend suggests that the performance of the business is improving. During the past fiscal year, INSTALLED BLDG PRODUCTS INC increased its bottom line by earning $0.85 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($1.37 versus $0.85).
  • Powered by its strong earnings growth of 375.00% and other important driving factors, this stock has surged by 38.58% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The debt-to-equity ratio of 1.24 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, IBP's quick ratio is somewhat strong at 1.14, demonstrating the ability to handle short-term liquidity needs.

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