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 FactSet Research Systems ( FDS) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified FactSet Research Systems as such a stock due to the following factors:
- FDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.3 million.
- FDS has traded 176,374 shares today.
- FDS is down 3.2% today.
- FDS was up 9.7% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in FDS with the Ticky from Trade-Ideas. See the FREE profile for FDS NOW at Trade-Ideas More details on FDS: FactSet Research Systems Inc. provides integrated financial information and analytical applications to investment community in the United States, Europe, and the Asia Pacific. The stock currently has a dividend yield of 1.3%. FDS has a PE ratio of 23.1. Currently there are 2 analysts that rate FactSet Research Systems a buy, 1 analyst rates it a sell, and 8 rate it a hold. The average volume for FactSet Research Systems has been 384,600 shares per day over the past 30 days. FactSet Research Systems has a market cap of $4.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.63 and a short float of 18.3% with 12.67 days to cover. Shares are up 5.6% 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 FactSet Research Systems as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, growth in earnings per share and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 5.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FDS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.70, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, FACTSET RESEARCH SYSTEMS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- FACTSET RESEARCH SYSTEMS INC has improved earnings per share by 7.2% 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, FACTSET RESEARCH SYSTEMS INC increased its bottom line by earning $4.47 versus $4.14 in the prior year. This year, the market expects an improvement in earnings ($4.97 versus $4.47).
- Net operating cash flow has increased to $58.14 million or 14.81% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.21%.
- You can view the full FactSet Research Systems 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.