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

  • NU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $101.6 million.
  • NU has traded 791,013 shares today.
  • NU is trading at a new lifetime high.

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More details on NU:

Northeast Utilities, a public utility company, through its subsidiaries, is engaged in the energy delivery business. The company is involved in generation, transmission, and distribution of electricity; and distribution of natural gas. The stock currently has a dividend yield of 3.5%. NU has a PE ratio of 18.7. Currently there are 8 analysts that rate Northeast Utilities a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Northeast Utilities has been 1.6 million shares per day over the past 30 days. Northeast Utilities has a market cap of $14.7 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.47 and a short float of 2.6% with 3.84 days to cover. Shares are up 10.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Northeast Utilities as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $402.87 million or 36.15% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.75%.
  • The debt-to-equity ratio is somewhat low, currently at 0.95, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.34 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • NORTHEAST UTILITIES's earnings per share declined by 25.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NORTHEAST UTILITIES increased its bottom line by earning $2.48 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($2.68 versus $2.48).

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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