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 Advisory Board Company ( ABCO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Advisory Board Company as such a stock due to the following factors:
- ABCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.5 million.
- ABCO has traded 70,465 shares today.
- ABCO is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ABCO with the Ticky from Trade-Ideas. See the FREE profile for ABCO NOW at Trade-Ideas More details on ABCO: The Advisory Board Company provides best practices research and analysis, business intelligence and software tools, and management and advisory services to the health care and education industries in the United States and internationally. ABCO has a PE ratio of 99.4. Currently there are 6 analysts that rate Advisory Board Company a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Advisory Board Company has been 120,400 shares per day over the past 30 days. Advisory Board has a market cap of $2.1 billion and is part of the services sector and diversified services industry. The stock has a beta of -0.22 and a short float of 6% with 13.39 days to cover. Shares are up 27.5% year to date as of the close of trading on Friday. 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 Advisory Board Company 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, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- ABCO's revenue growth has slightly outpaced the industry average of 12.3%. Since the same quarter one year prior, revenues rose by 18.3%. 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.
- ABCO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.87 is somewhat weak and could be cause for future problems.
- Compared to its closing price of one year ago, ABCO's share price has jumped by 29.53%, 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.
- 47.04% is the gross profit margin for ADVISORY BOARD CO which we consider to be strong. Regardless of ABCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.99% trails the industry average.
- ADVISORY BOARD CO's earnings per share declined by 9.1% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ADVISORY BOARD CO reported lower earnings of $0.62 versus $0.66 in the prior year. This year, the market expects an improvement in earnings ($1.25 versus $0.62).
- You can view the full Advisory Board Company Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.