Trade-Ideas: BT Group (BT) Is Today's New Lifetime High Stock

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

  • BT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.2 million.
  • BT has traded 13,470 shares today.
  • BT is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BT with the Ticky from Trade-Ideas. See the FREE profile for BT NOW at Trade-Ideas

More details on BT:

BT Group plc provides communications services worldwide. The company operates through BT Global Services, BT Business, BT Consumer, BT Wholesale, and Openreach segments. The stock currently has a dividend yield of 2.5%. Currently there are 4 analysts that rate BT Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for BT Group has been 145,500 shares per day over the past 30 days. BT Group has a market cap of $56.4 billion and is part of the technology sector and telecommunications industry. Shares are up 11.8% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BT Group as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and increase in stock price during the past year. We feel its 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:
  • Compared to other companies in the Diversified Telecommunication Services industry and the overall market, BT GROUP PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 40.41% is the gross profit margin for BT GROUP PLC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.75% is above that of the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • BT GROUP PLC's earnings per share declined by 5.1% 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, BT GROUP PLC increased its bottom line by earning $4.22 versus $4.09 in the prior year. This year, the market expects an improvement in earnings ($4.57 versus $4.22).
  • BT, with its decline in revenue, underperformed when compared the industry average of 3.9%. Since the same quarter one year prior, revenues fell by 27.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

If you liked this article you might like

Europe Drifts Lower While Ex-Dividends Pummel London

Europe Drifts Lower While Ex-Dividends Pummel London

Dow Enters August With a Bang, New Records for Day Five
Jim Cramer on Dow 22,000: We Are a Little Overextended Here
European Benchmarks Slump After Earnings Calamity - FDA Socks London

European Benchmarks Slump After Earnings Calamity - FDA Socks London