Trade-Ideas: CommScope (COMM) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified CommScope (COMM) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

CommScope

(

COMM

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

  • COMM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.1 million.
  • COMM is up 5.2% today from today's close.

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More details on COMM:

CommScope Holding Company, Inc., together with its subsidiaries, provides connectivity and infrastructure solutions for wireless, business enterprise, and residential broadband networks worldwide. The company operates through three segments: Wireless, Enterprise, and Broadband. COMM has a PE ratio of 98. Currently there are 5 analysts that rate CommScope a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for CommScope has been 1.5 million shares per day over the past 30 days. CommScope has a market cap of $5.0 billion and is part of the technology sector and telecommunications industry. Shares are up 16.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CommScope as a

buy

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • 39.98% is the gross profit margin for COMMSCOPE HOLDING CO INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -8.30% is in-line with the industry average.
  • Compared to its closing price of one year ago, COMM's share price has jumped by 28.78%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • COMMSCOPE HOLDING CO INC 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COMMSCOPE HOLDING CO INC increased its bottom line by earning $1.24 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $1.24).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.1%. Since the same quarter one year prior, revenues slightly dropped by 2.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The debt-to-equity ratio is very high at 4.06 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, COMM has managed to keep a strong quick ratio of 2.06, which demonstrates the ability to cover short-term cash needs.

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