Trade-Ideas: Veeco Instruments (VECO) Is Today's "Perilous Reversal" 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 Veeco Instruments (VECO) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Veeco Instruments as such a stock due to the following factors:
- VECO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.5 million.
- VECO has traded 861,292 shares today.
- VECO is down 3% today.
- VECO was up 8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in VECO with the Ticky from Trade-Ideas. See the FREE profile for VECO NOW at Trade-IdeasMore details on VECO: Veeco Instruments Inc., together with its subsidiaries, designs, manufactures, and markets process equipment to make light emitting diodes (LEDs) and hard-disk drives worldwide. Currently there are 3 analysts that rate Veeco Instruments a buy, 1 analyst rates it a sell, and 9 rate it a hold.The average volume for Veeco Instruments has been 645,700 shares per day over the past 30 days. Veeco Instruments has a market cap of $1.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.19 and a short float of 9% with 7.21 days to cover. Shares are up 5.7% year-to-date as of the close of trading on Tuesday.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 Veeco Instruments as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.Highlights from the ratings report include:
- VECO'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 6.24, which clearly demonstrates the ability to cover short-term cash needs.
- VECO, with its decline in revenue, underperformed when compared the industry average of 10.4%. Since the same quarter one year prior, revenues fell by 25.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for VEECO INSTRUMENTS INC is currently lower than what is desirable, coming in at 33.78%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.06% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$9.14 million or 120.18% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Veeco Instruments 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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