New Lifetime High Reached: Open Text Corporation (OTEX)

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

  • OTEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.1 million.
  • OTEX has traded 92,970 shares today.
  • OTEX is trading at a new lifetime high.

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More details on OTEX:

Open Text Corporation engages in the design, development, marketing, and sale of enterprise information management software and solutions. The stock currently has a dividend yield of 1.6%. OTEX has a PE ratio of 29.8. Currently there are 8 analysts that rate Open Text Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Open Text Corporation has been 201,400 shares per day over the past 30 days. Open Text has a market cap of $4.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.52 and a short float of 18.6% with 69.47 days to cover. Shares are up 33.6% 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 Open Text Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • OTEX's revenue growth has slightly outpaced the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 13.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 407.14% and other important driving factors, this stock has surged by 41.40% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OTEX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • OPEN TEXT CORP 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. During the past fiscal year, OPEN TEXT CORP increased its bottom line by earning $2.52 versus $2.14 in the prior year.
  • The gross profit margin for OPEN TEXT CORP is currently very high, coming in at 72.80%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, OTEX's net profit margin of 12.14% significantly trails the industry average.

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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