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

  • NTES has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.5 million.
  • NTES has traded 4,028 shares today.
  • NTES is trading at a new lifetime high.

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More details on NTES:

NetEase, Inc., through its subsidiaries, operates in online games, Internet portal, and e-mail and wireless value-added services businesses in the People's Republic of China. The company operates in three segments: Online Game Services; Advertising Services; and E-mail, E-Commerce and Others. The stock currently has a dividend yield of 2%. NTES has a PE ratio of 19.1. Currently there are 6 analysts that rate NetEase a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for NetEase has been 517,500 shares per day over the past 30 days. NetEase has a market cap of $11.0 billion and is part of the technology sector and internet industry. Shares are up 6.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates NetEase as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 5.6% when compared to the same quarter one year prior, going from $171.23 million to $180.79 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 9.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although NTES's debt-to-equity ratio of 0.09 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 4.14, 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 Internet Software & Services industry and the overall market, NETEASE INC's return on equity exceeds that of both the industry average and the S&P 500.

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