New Lifetime High Reached: Verint Systems (VRNT)

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

  • VRNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.4 million.
  • VRNT has traded 8,062 shares today.
  • VRNT is trading at a new lifetime high.

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More details on VRNT:

Verint Systems Inc. provides Actionable Intelligence solutions and value-added services worldwide. VRNT has a PE ratio of 53.1. Currently there are 6 analysts that rate Verint Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Verint Systems has been 496,300 shares per day over the past 30 days. Verint Systems has a market cap of $3.6 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.87 and a short float of 4.6% with 5.52 days to cover. Shares are up 39.2% 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. Analysis:

TheStreet Quant Ratings rates Verint Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. 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 27.0%. Since the same quarter one year prior, revenues rose by 24.4%. 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.
  • Compared to its closing price of one year ago, VRNT's share price has jumped by 62.28%, 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.
  • VERINT SYSTEMS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, VERINT SYSTEMS INC increased its bottom line by earning $0.99 versus $0.92 in the prior year. This year, the market expects an improvement in earnings ($3.42 versus $0.99).
  • VRNT's debt-to-equity ratio of 0.72 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.10 is sturdy.
  • The gross profit margin for VERINT SYSTEMS INC is rather high; currently it is at 68.17%. Regardless of VRNT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VRNT's net profit margin of -4.43% significantly underperformed when compared to the industry average.


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