Trade-Ideas LLC identified

Total System Services

(

TSS

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Total System Services as such a stock due to the following factors:

  • TSS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.9 million.
  • TSS is up 3% today from today's close.

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More details on TSS:

Total System Services, Inc. provides payment processing, merchant, and related payment services to financial and nonfinancial institutions in the United States, Europe, Canada, Mexico, and internationally. The stock currently has a dividend yield of 0.8%. TSS has a PE ratio of 26. Currently there are 4 analysts that rate Total System Services a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Total System Services has been 1.7 million shares per day over the past 30 days. Total System Services has a market cap of $9.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.21 and a short float of 1.4% with 1.97 days to cover. Shares are up 3.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Total System Services as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 12.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, TSS has a quick ratio of 2.23, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income increased by 3.7% when compared to the same quarter one year prior, going from $79.86 million to $82.83 million.
  • TOTAL SYSTEM SERVICES INC reported flat earnings per share in the most recent quarter. 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, TOTAL SYSTEM SERVICES INC increased its bottom line by earning $1.96 versus $1.46 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $1.96).
  • Compared to its closing price of one year ago, TSS's share price has jumped by 33.01%, 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.

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