Trade-Ideas: KKR (KKR) Is Today's New Lifetime High Stock

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

  • KKR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.7 million.
  • KKR has traded 2.2 million shares today.
  • KKR is trading at a new lifetime high.

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More details on KKR:

Kohlberg Kravis Roberts & Co. is a private equity investment firm specializing in acquisitions, leveraged buyouts, management buyouts, special situations, growth equity, mature, and middle market investments. The stock currently has a dividend yield of 7%. KKR has a PE ratio of 13.3. Currently there are 10 analysts that rate KKR a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for KKR has been 1.7 million shares per day over the past 30 days. KKR has a market cap of $6.7 billion and is part of the financial sector and financial services industry. The stock has a beta of 2.34 and a short float of 1.9% with 4.46 days to cover. Shares are up 57.6% year-to-date as of the close of trading on Monday.

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 KKR as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, increase in net income 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:
  • KKR's very impressive revenue growth greatly exceeded the industry average of 8.7%. Since the same quarter one year prior, revenues leaped by 70.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 34.69% and other important driving factors, this stock has surged by 69.95% 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, KKR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • KKR & CO LP has improved earnings per share by 34.7% 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, KKR & CO LP increased its bottom line by earning $2.23 versus $0.04 in the prior year. This year, the market expects an improvement in earnings ($2.48 versus $2.23).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 60.7% when compared to the same quarter one year prior, rising from $127.41 million to $204.74 million.
  • The gross profit margin for KKR & CO LP is currently extremely low, coming in at 4.11%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, KKR's net profit margin of 44.90% significantly outperformed against the industry.

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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