Trade-Ideas LLC identified

Dealertrack Technologies

(

TRAK

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

  • TRAK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $120.6 million.
  • TRAK has traded 688,514 shares today.
  • TRAK is trading at a new lifetime high.

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More details on TRAK:

Dealertrack Technologies, Inc. provides Web-based software solutions and services to the automotive retail industry in the United States and Canada. Currently there are no analysts that rate Dealertrack Technologies a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Dealertrack Technologies has been 1.2 million shares per day over the past 30 days. Dealertrack has a market cap of $3.5 billion and is part of the technology sector and internet industry. The stock has a beta of 0.44 and a short float of 8.7% with 2.45 days to cover. Shares are up 40.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Dealertrack Technologies as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 19.9%. 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.
  • Compared to its closing price of one year ago, TRAK's share price has jumped by 37.71%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The gross profit margin for DEALERTRACK TECHNOLOGIES INC is rather high; currently it is at 59.32%. Regardless of TRAK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TRAK's net profit margin of -3.44% significantly underperformed when compared to the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, DEALERTRACK TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 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 576.1% when compared to the same quarter one year ago, falling from -$1.38 million to -$9.30 million.

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