Cypress Semiconductor (CY) Is Today's Strong On High Volume Stock

Trade-Ideas LLC identified Cypress Semiconductor (CY) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Cypress Semiconductor

(

CY

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cypress Semiconductor as such a stock due to the following factors:

  • CY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $125.1 million.
  • CY has traded 1.2 million shares today.
  • CY is trading at 2.64 times the normal volume for the stock at this time of day.
  • CY is trading at a new high 3.07% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CY:

Cypress Semiconductor Corporation designs, develops, manufactures, markets, and sells mixed-signal programmable solutions worldwide. The stock currently has a dividend yield of 4.2%. Currently there are 7 analysts that rate Cypress Semiconductor a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Cypress Semiconductor has been 7.1 million shares per day over the past 30 days. Cypress Semiconductor has a market cap of $3.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.98 and a short float of 14.8% with 3.79 days to cover. Shares are up 6.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cypress Semiconductor as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • CY's very impressive revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues leaped by 100.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 57.9% when compared to the same quarter one year prior, rising from -$246.80 million to -$104.02 million.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems.
  • CY has underperformed the S&P 500 Index, declining 13.90% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, CYPRESS SEMICONDUCTOR CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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