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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 or Stephanie Link.

Trade-Ideas LLC identified

Gartner

(

IT

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

  • IT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.7 million.
  • IT has traded 217,650 shares today.
  • IT is trading at a new lifetime high.

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More details on IT:

Gartner, Inc. provides independent and objective research and analysis on information technology (IT), computer hardware, software, communications, and related technology industries. IT has a PE ratio of 36.4. Currently there are 4 analysts that rate Gartner a buy, no analysts rate it a sell, and 4 rate it a hold.

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The average volume for Gartner has been 389,000 shares per day over the past 30 days. Gartner has a market cap of $6.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.99 and a short float of 2.3% with 4.07 days to cover. Shares are up 51% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Gartner as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 22.8%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GARTNER INC has improved earnings per share by 21.2% 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, GARTNER INC increased its bottom line by earning $1.73 versus $1.38 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $1.73).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 21.7% when compared to the same quarter one year prior, going from $31.38 million to $38.19 million.
  • The gross profit margin for GARTNER INC is rather high; currently it is at 60.62%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, IT's net profit margin of 9.29% significantly trails the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 40.36% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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