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 Alliance Data Systems Corporation ( ADS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Alliance Data Systems Corporation as such a stock due to the following factors:
- ADS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $209.7 million.
- ADS has traded 2,286 shares today.
- ADS is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ADS with the Ticky from Trade-Ideas. See the FREE profile for ADS NOW at Trade-Ideas More details on ADS: Alliance Data Systems Corporation provides marketing and loyalty solutions in the United States, Canada, and other countries. ADS has a PE ratio of 38.8. Currently there are 13 analysts that rate Alliance Data Systems Corporation a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Alliance Data Systems Corporation has been 721,500 shares per day over the past 30 days. Alliance Data Systems has a market cap of $15.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.09 and a short float of 6.6% with 4.08 days to cover. Shares are up 9.6% year-to-date as of the close of trading on Wednesday. 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 Alliance Data Systems Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, solid stock price performance 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:
- The revenue growth greatly exceeded the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 17.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ALLIANCE DATA SYSTEMS CORP has improved earnings per share by 40.9% 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, ALLIANCE DATA SYSTEMS CORP increased its bottom line by earning $7.43 versus $6.60 in the prior year. This year, the market expects an improvement in earnings ($12.25 versus $7.43).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 40.9% when compared to the same quarter one year prior, rising from $83.66 million to $117.87 million.
- Powered by its strong earnings growth of 40.94% and other important driving factors, this stock has surged by 77.28% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 40.31% is the gross profit margin for ALLIANCE DATA SYSTEMS CORP which we consider to be strong. Regardless of ADS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ADS's net profit margin of 10.32% is significantly lower than the industry average.
- You can view the full Alliance Data Systems Corporation 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.