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 WageWorks ( WAGE) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified WageWorks as such a stock due to the following factors:
- WAGE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.6 million.
- WAGE has traded 326,006 shares today.
- WAGE is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in WAGE with the Ticky from Trade-Ideas. See the FREE profile for WAGE NOW at Trade-Ideas More details on WAGE: WageWorks, Inc. provides tax-advantaged programs for consumer-directed health, commuter, and other employee spending account benefits (CDBs) in the United States. WAGE has a PE ratio of 858.6. Currently there are 4 analysts that rate WageWorks a buy, no analysts rate it a sell, and none rate it a hold. The average volume for WageWorks has been 325,100 shares per day over the past 30 days. WageWorks has a market cap of $2.1 billion and is part of the services sector and diversified services industry. Shares are up 3.4% year-to-date as of the close of trading on Tuesday. 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 WageWorks as a hold. 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 and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and weak operating cash flow. Highlights from the ratings report include:
- WAGE's revenue growth has slightly outpaced the industry average of 19.3%. Since the same quarter one year prior, revenues rose by 25.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- WAGE's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
- WAGEWORKS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WAGEWORKS INC reported lower earnings of $0.36 versus $1.28 in the prior year. This year, the market expects an improvement in earnings ($0.74 versus $0.36).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Professional Services industry and the overall market, WAGEWORKS INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full WageWorks 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.