Luxoft (LXFT) Hits New Lifetime High Today

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

  • LXFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.0 million.
  • LXFT has traded 1,200 shares today.
  • LXFT is trading at a new lifetime high.

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More details on LXFT:

Luxoft Holding, Inc., together with its subsidiaries, provides software development services and IT solutions to multinational corporations primarily in Western Europe and North America. LXFT has a PE ratio of 24. Currently there are 3 analysts that rate Luxoft a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Luxoft has been 193,300 shares per day over the past 30 days. Luxoft has a market cap of $1.8 billion and is part of the technology sector and computer software & services industry. Shares are up 44.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Luxoft as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 22.5%. Since the same quarter one year prior, revenues rose by 29.2%. 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.
  • Compared to its closing price of one year ago, LXFT's share price has jumped by 58.54%, exceeding the performance of the broader market during that same time frame. Although LXFT had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • LUXOFT HOLDING INC's earnings per share declined by 12.5% 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, LUXOFT HOLDING INC increased its bottom line by earning $1.93 versus $1.56 in the prior year. This year, the market expects an improvement in earnings ($2.64 versus $1.93).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the IT Services industry average. The net income has decreased by 13.1% when compared to the same quarter one year ago, dropping from $10.40 million to $9.04 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to other companies in the IT Services industry and the overall market on the basis of return on equity, LUXOFT HOLDING INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

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