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

  • CEC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.6 million.
  • CEC has traded 2,348 shares today.
  • CEC is trading at a new lifetime high.

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More details on CEC:

CEC Entertainment, Inc. develops, operates, and franchises family dining and entertainment centers under the Chuck E. Cheese's name in the United States and internationally. The stock currently has a dividend yield of 2.2%. CEC has a PE ratio of 17.6. Currently there are no analysts that rate CEC Entertainment a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for CEC Entertainment has been 122,400 shares per day over the past 30 days. CEC Entertainment has a market cap of $850.0 million and is part of the services sector and leisure industry. The stock has a beta of 1.04 and a short float of 8.3% with 1.35 days to cover. Shares are up 23.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CEC Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, CEC's share price has jumped by 71.36%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CEC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 39.41% is the gross profit margin for CEC ENTERTAINMENT INC which we consider to be strong. Regardless of CEC'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 3.79% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 0.5%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • CEC ENTERTAINMENT INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CEC ENTERTAINMENT INC reported lower earnings of $2.46 versus $2.82 in the prior year. This year, the market expects an improvement in earnings ($2.95 versus $2.46).

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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