New Lifetime High For PTC (PTC)

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

  • PTC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.2 million.
  • PTC has traded 10,694 shares today.
  • PTC is trading at a new lifetime high.

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

More details on PTC:

PTC Inc. develops, markets, and supports software products and solutions in the areas of computer-aided design (CAD), product lifecycle management (PLM), application lifecycle management (ALM), service lifecycle management (SLM), and Internet of things (IoT) worldwide. PTC has a PE ratio of 41. Currently there are 3 analysts that rate PTC a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for PTC has been 889,900 shares per day over the past 30 days. PTC has a market cap of $4.6 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.42 and a short float of 1.5% with 1.65 days to cover. Shares are up 7.6% year-to-date as of the close of trading on Tuesday.

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 PTC as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The gross profit margin for PTC INC is currently very high, coming in at 76.36%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, PTC's net profit margin of 1.71% significantly trails the industry average.
  • PTC 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, PTC INC increased its bottom line by earning $1.34 versus $1.19 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $1.34).
  • PTC, with its decline in revenue, slightly underperformed the industry average of 1.5%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Software industry and the overall market, PTC INC's return on equity is below that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 87.7% when compared to the same quarter one year ago, falling from $43.76 million to $5.39 million.

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

Why These Tech Companies Could Become Private Equity Targets in 2018

Why These Tech Companies Could Become Private Equity Targets in 2018

Buying Opportunities in Software: Cramer's 'Off the Charts'

Buying Opportunities in Software: Cramer's 'Off the Charts'

Can You Recognize Growth?: Cramer's 'Mad Money' Recap (Tuesday 10/31/2017)

Can You Recognize Growth?: Cramer's 'Mad Money' Recap (Tuesday 10/31/2017)

A Stock Market Pullback Is Imminent and These 28 Stocks Will Help You Survive It
Pure Storage Among Four Stocks Ready to Breakout

Pure Storage Among Four Stocks Ready to Breakout