Trade-Ideas: Avago Technologies (AVGO) 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 or Stephanie Link.Trade-Ideas LLC identified Avago Technologies (AVGO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Avago Technologies as such a stock due to the following factors:
- AVGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.5 million.
- AVGO has traded 2.0 million shares today.
- AVGO is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AVGO with the Ticky from Trade-Ideas. See the FREE profile for AVGO NOW at Trade-IdeasMore details on AVGO: Avago Technologies Limited engages in the design, development, and supply of analog semiconductor devices with a focus on III-V based products. The stock currently has a dividend yield of 2.4%. AVGO has a PE ratio of 17.3. Currently there are 10 analysts that rate Avago Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.The average volume for Avago Technologies has been 2.2 million shares per day over the past 30 days. Avago has a market cap of $9.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.98 and a short float of 1.2% with 1.47 days to cover. Shares are up 23.3% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Avago Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.Highlights from the ratings report include:
- Since the same quarter one year prior, revenues slightly increased by 6.3%. 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.
- Net operating cash flow has slightly increased to $137.00 million or 7.03% when compared to the same quarter last year.
- Compared to where it was trading one year ago, AVGO is up 10.78% to its most recent closing price of 39.03. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.
- AVGO's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.27, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for AVAGO TECHNOLOGIES LTD is rather high; currently it is at 54.50%. It has increased from the same quarter the previous year.
- You can view the full Avago Technologies Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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