New Lifetime High Reached By Ultimate Software Group (ULTI)

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

  • ULTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.9 million.
  • ULTI has traded 92,462 shares today.
  • ULTI is trading at a new lifetime high.

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More details on ULTI:

The Ultimate Software Group, Inc. designs, develops, and markets human capital management via cloud technology to businesses across various industries. ULTI has a PE ratio of 200.8. Currently there are 7 analysts that rate Ultimate Software Group a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Ultimate Software Group has been 151,300 shares per day over the past 30 days. Ultimate Software Group has a market cap of $4.0 billion and is part of the technology sector and internet industry. The stock has a beta of 1.29 and a short float of 4.7% with 8.57 days to cover. Shares are up 53.1% 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 Ultimate Software Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ULTIMATE SOFTWARE GROUP INC 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. During the past fiscal year, ULTIMATE SOFTWARE GROUP INC increased its bottom line by earning $0.51 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($1.41 versus $0.51).
  • Net operating cash flow has significantly increased by 73.96% to $14.38 million when compared to the same quarter last year. In addition, ULTIMATE SOFTWARE GROUP INC has also vastly surpassed the industry average cash flow growth rate of -17.33%.
  • The gross profit margin for ULTIMATE SOFTWARE GROUP INC is rather high; currently it is at 62.40%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ULTI's net profit margin of 5.02% significantly trails the industry average.
  • Powered by its strong earnings growth of 88.88% and other important driving factors, this stock has surged by 44.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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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