Trade-Ideas LLC identified

TAL Education Group

(

XRS

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

  • XRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.2 million.
  • XRS has traded 230,325 shares today.
  • XRS is trading at a new lifetime high.

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More details on XRS:

TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China. XRS has a PE ratio of 34. Currently there are 3 analysts that rate TAL Education Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for TAL Education Group has been 843,300 shares per day over the past 30 days. TAL Education Group has a market cap of $4.1 billion and is part of the services sector and diversified services industry. Shares are up 9.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates TAL Education Group as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 11.4%. Since the same quarter one year prior, revenues rose by 43.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Diversified Consumer Services industry and the overall market, TAL EDUCATION GROUP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, XRS's share price has jumped by 66.11%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • TAL EDUCATION GROUP's earnings per share declined by 7.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TAL EDUCATION GROUP increased its bottom line by earning $0.81 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.47 versus $0.81).

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