The growth ratings are:
ChecklistRating
Composite Rating 74 Fail
EPS Rating 90 Pass
RS Rating 20 Fail
Group RS Rating A Pass
SMR Rating A Pass
Acc/Dis Rating B- Pass
3 years sales growth only 24%, A little low.
3 year EPS growth 23%, also a bit low. only 1 Q of EPS growth acceleration.
1 Q of increasing fund ownership.
They are ranked #20 in their stock group, higher rated in the group are:
1=Logm
2=payc
3=now
4=pcty
5=blkb
RS is obvious when you look at the chart, so from a short-term speculator point of view you would not be interested in this stock, but from a long term Rule Breaker’s point of view, RS is meaningless.
Article from the 8/2/17 earnings release:
Shares of Ultimate Software Group (ULTI) plunged after the enterprise software provider reported second-quarter revenue that missed views and cut its full-year guidance.
Ultimate stock fell 11.9% to 200.01 on the stock market today.
Ultimate, which specializes in HCM SaaS — human-capital management software as a service — cited a change in expectations involving large accounts that will push out revenue recognition.
In the June quarter, Ultimate said it earned 93 cents, up 22% from a year earlier, with revenue rising 20% to $224.7 million. Analysts had projected sales of $228 million and profit of 91 cents.
“The company lowered its recurring revenue guidance by roughly $20 million for the second half, driven by longer-than-expected implementation time frame, and it now expects roughly 22% recurring revenue growth for 2017, down from the prior view of ‘in excess of 25%,’ and total revenue growth of approximately 20%, compared with its earlier view of 24%,” said Justin Furby, a William Blair analyst in a report.
Next earnings due: 11/1, so if you think there is a turnaround then buy soon. If they are going to have systemic problems with larger integrations, then lots of trouble down the road.
I think I will go ahead and add this to my “DG Strategy” portfolio, whereby I buy a fixed amount of each David Gardner new rec (2RB and 1SA) per month and then also buy the occasional old rec when something comes along.
For this board, it is likely they don’t have the consistent growth we would be looking for.
FYI BLKB was also on this podcast and they jumped after earnings. OA was on the podcast and was bought out the next day.
http://stockcharts.com/freecharts/candleglance.html?DG-RBI-1…
NuVasive had a nice little pop after earnings, and still has lots of room before it reaches new highs.