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

  • NSM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.3 million.
  • NSM has traded 538,363 shares today.
  • NSM is trading at a new lifetime high.

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More details on NSM:

Nationstar Mortgage Holdings Inc. operates as a residential mortgage loan servicer in the United States. It operates in two segments, Servicing and Originations. NSM has a PE ratio of 15.3. Currently there are 3 analysts that rate Nationstar Mortgage Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Nationstar Mortgage Holdings has been 854,800 shares per day over the past 30 days. Nationstar has a market cap of $4.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.12 and a short float of 30.3% with 13.41 days to cover. Shares are up 68.3% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Nationstar Mortgage Holdings as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$1,857.19 million or 277.54% when compared to the same quarter last year. Despite a decrease in cash flow of 277.54%, NATIONSTAR MORTGAGE HOLDINGS is still significantly exceeding the industry average of -357.21%.
  • 49.08% is the gross profit margin for NATIONSTAR MORTGAGE HOLDINGS which we consider to be strong. 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 18.81% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, NATIONSTAR MORTGAGE HOLDINGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • This stock has increased by 83.54% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in NSM do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • NATIONSTAR MORTGAGE HOLDINGS 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. This trend suggests that the performance of the business is improving. During the past fiscal year, NATIONSTAR MORTGAGE HOLDINGS increased its bottom line by earning $2.31 versus $0.24 in the prior year. This year, the market expects an improvement in earnings ($4.70 versus $2.31).

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