Today DST Systems (DST) Hits New Lifetime High

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

  • DST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.5 million.
  • DST has traded 1,261 shares today.
  • DST is trading at a new lifetime high.

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More details on DST:

DST Systems, Inc. provides technology-based information processing and servicing solutions in the United States, the United Kingdom, Canada, Australia, and internationally. The stock currently has a dividend yield of 0.9%. DST has a PE ratio of 8. Currently there are 3 analysts that rate DST Systems a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for DST Systems has been 208,700 shares per day over the past 30 days. DST Systems 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 1.17 and a short float of 0.7% with 1.10 days to cover. Shares are up 33.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates DST Systems as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows 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 2.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 35.61% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DST should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the IT Services industry average. The net income increased by 7.4% when compared to the same quarter one year prior, going from $100.40 million to $107.80 million.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that DST's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.

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