Today's Post-Market Loser: Flextronics International (FLEX)

Trade-Ideas LLC identified Flextronics International (FLEX) as a post-market laggard candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Flextronics International

(

FLEX

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Flextronics International as such a stock due to the following factors:

  • FLEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $79.6 million.
  • FLEX is down 3% today from today's close.

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More details on FLEX:

Flextronics International Ltd. provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide. FLEX has a PE ratio of 16. Currently there are 8 analysts that rate Flextronics International a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Flextronics International has been 4.8 million shares per day over the past 30 days. Flextronics International has a market cap of $7.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.91 and a short float of 1% with 0.86 days to cover. Shares are up 18.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Flextronics International as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 57.83% to $196.67 million when compared to the same quarter last year. In addition, FLEXTRONICS INTERNATIONAL has also vastly surpassed the industry average cash flow growth rate of -13.60%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • FLEXTRONICS INTERNATIONAL has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, FLEXTRONICS INTERNATIONAL reported lower earnings of $0.79 versus $1.01 in the prior year. This year, the market expects an improvement in earnings ($1.23 versus $0.79).
  • FLEX, with its decline in revenue, slightly underperformed the industry average of 1.5%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, FLEXTRONICS INTERNATIONAL's return on equity exceeds that of both the industry average and the S&P 500.

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