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 Verisk Analytics ( VRSK) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Verisk Analytics as such a stock due to the following factors:
- VRSK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.5 million.
- VRSK is down 4.3% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VRSK with the Ticky from Trade-Ideas. See the FREE profile for VRSK NOW at Trade-Ideas More details on VRSK: Verisk Analytics, Inc. provides proprietary data, analytics methods, and embedded decision support solutions for detecting fraud in property and casualty (P&C) insurance, financial, and healthcare industries primarily in the United States. VRSK has a PE ratio of 31.4. Currently there are 11 analysts that rate Verisk Analytics a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Verisk Analytics has been 801,900 shares per day over the past 30 days. Verisk Analytics has a market cap of $11.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.23 and a short float of 1.1% with 1.90 days to cover. Shares are down 0.1% 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 Verisk Analytics as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, good cash flow from operations 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:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- VERISK ANALYTICS INC has improved earnings per share by 16.7% 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, VERISK ANALYTICS INC increased its bottom line by earning $1.92 versus $1.63 in the prior year. This year, the market expects an improvement in earnings ($2.24 versus $1.92).
- Despite its growing revenue, the company underperformed as compared with the industry average of 18.0%. Since the same quarter one year prior, revenues slightly increased by 10.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has slightly increased to $139.76 million or 4.64% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -24.07%.
- The gross profit margin for VERISK ANALYTICS INC is rather high; currently it is at 59.74%. Regardless of VRSK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VRSK's net profit margin of 21.98% significantly outperformed against the industry.
- You can view the full Verisk Analytics 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.