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 $16.6 million.
  • OTEX has traded 3,703 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.

The average volume for Open Text has been 308,200 shares per day over the past 30 days. Open Text has a market cap of $7.4 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 3.1% with 13.97 days to cover. Shares are up 30% year-to-date as of the close of trading on Monday.

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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, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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 61.75% 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).
  • Net operating cash flow has increased to $189.94 million or 32.72% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 22.08%.
  • The gross profit margin for OPEN TEXT CORP is currently very high, coming in at 71.90%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.68% trails the industry average.

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