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.

Trade-Ideas LLC identified Ultimate Software Group ( ULTI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Ultimate Software Group as such a stock due to the following factors:

  • ULTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.7 million.
  • ULTI has traded 1,132 shares today.
  • ULTI is trading at a new lifetime high.

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More details on ULTI:

The Ultimate Software Group, Inc. provides cloud-based human capital management solutions primarily to enterprise companies in the United States. Its UltiPro software solution delivers the functionality businesses to manage the employee life cycle from recruitment to retirement. ULTI has a PE ratio of 116.3. Currently there are 10 analysts that rate Ultimate Software Group a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Ultimate Software Group has been 222,800 shares per day over the past 30 days. Ultimate Software Group has a market cap of $5.3 billion and is part of the technology sector and internet industry. The stock has a beta of 0.77 and a short float of 8.4% with 11.43 days to cover. Shares are up 20.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ultimate Software Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 21.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ULTIMATE SOFTWARE GROUP INC has improved earnings per share by 17.6% 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, ULTIMATE SOFTWARE GROUP INC increased its bottom line by earning $1.52 versus $0.89 in the prior year. This year, the market expects an improvement in earnings ($2.47 versus $1.52).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 20.7% when compared to the same quarter one year prior, going from $9.81 million to $11.84 million.
  • 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 Software industry and the overall market, ULTIMATE SOFTWARE GROUP INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for ULTIMATE SOFTWARE GROUP INC is rather high; currently it is at 64.48%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ULTI's net profit margin of 8.73% significantly trails the industry average.

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