Strong And Under The Radar Today: Semtech (SMTC)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Semtech as such a stock due to the following factors:
- SMTC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.0 million.
- SMTC has traded 58.5373000000000018872015061788260936737060546875 options contracts today.
- SMTC is making at least a new 3-day high.
- SMTC has a PE ratio of 83.
- SMTC is mentioned 1.19 times per day on StockTwits.
- SMTC has not yet been mentioned on StockTwits today.
- SMTC is currently in the upper 20% of its 1-year range.
- SMTC is in the upper 35% of its 20-day range.
- SMTC is in the upper 45% of its 5-day range.
- SMTC is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SMTC with the Ticky from Trade-Ideas. See the FREE profile for SMTC NOW at Trade-Ideas
More details on SMTC:
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products. SMTC has a PE ratio of 83. Currently there are 3 analysts that rate Semtech a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Semtech has been 400,200 shares per day over the past 30 days. Semtech has a market cap of $1.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.20 and a short float of 5.3% with 5.92 days to cover. Shares are up 26.9% year-to-date as of the close of trading on Friday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Semtech as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- 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 4950.0% when compared to the same quarter one year prior, rising from -$0.14 million to $6.89 million.
- SMTC's revenue growth trails the industry average of 14.8%. Since the same quarter one year prior, revenues slightly increased by 0.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.47, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.61 is very high and demonstrates very strong liquidity.
- Net operating cash flow has declined marginally to $13.80 million or 6.09% when compared to the same quarter last year. Despite a decrease in cash flow of 6.09%, SEMTECH CORP is still significantly exceeding the industry average of -59.36%.
- 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. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SEMTECH CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Semtech Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.