Gartner (IT) Reaches New Lifetime High Today

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

  • IT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.1 million.
  • IT has traded 2,631 shares today.
  • IT is trading at a new lifetime high.

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More details on IT:

Gartner, Inc. provides independent and objective research and analysis on the information technology (IT), computer hardware, software, communications, and related technology industries in the United States, Canada, Europe, the Middle East, Africa, and internationally. IT has a PE ratio of 42.4. Currently there are 3 analysts that rate Gartner a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Gartner has been 362,000 shares per day over the past 30 days. Gartner has a market cap of $7.5 billion and is part of the technology sector and computer software & services industry. Shares are up 21.1% 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 Gartner as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance 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 revenue growth came in higher than the industry average of 6.6%. Since the same quarter one year prior, revenues rose by 14.7%. 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the IT Services industry and the overall market, GARTNER INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $122.85 million or 20.73% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.63%.
  • GARTNER INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, GARTNER INC increased its bottom line by earning $1.92 versus $1.73 in the prior year. This year, the market expects an improvement in earnings ($2.32 versus $1.92).
  • Compared to its closing price of one year ago, IT's share price has jumped by 37.62%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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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