Trade-Ideas: Gartner (IT) 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 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 $61.3 million.
  • IT has traded 4,350 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 45. 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 485,500 shares per day over the past 30 days. Gartner has a market cap of $7.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.96 and a short float of 2.6% with 2.86 days to cover. Shares are up 3.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Gartner as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 22.5%. Since the same quarter one year prior, revenues slightly increased by 5.5%. 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 gross profit margin for GARTNER INC is rather high; currently it is at 62.27%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.01% trails the industry average.
  • GARTNER INC's earnings per share declined by 20.0% 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, GARTNER INC increased its bottom line by earning $2.02 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($2.38 versus $2.02).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the IT Services industry average. The net income has decreased by 24.9% when compared to the same quarter one year ago, dropping from $37.74 million to $28.35 million.
  • Net operating cash flow has significantly decreased to $5.66 million or 65.61% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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