Trade-Ideas: Maxim Integrated Products (MXIM) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified Maxim Integrated Products (MXIM) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Maxim Integrated Products

(

MXIM

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

  • MXIM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $74.2 million.
  • MXIM is up 3% today from today's close.

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More details on MXIM:

Maxim Integrated Products, Inc. designs, develops, manufactures, and markets various linear and mixed-signal integrated circuits worldwide. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. The stock currently has a dividend yield of 3.5%. MXIM has a PE ratio of 47. Currently there are 9 analysts that rate Maxim Integrated Products a buy, 3 analysts rate it a sell, and 8 rate it a hold.

The average volume for Maxim Integrated Products has been 2.0 million shares per day over the past 30 days. Maxim Integrated has a market cap of $10.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.06 and a short float of 1.5% with 1.96 days to cover. Shares are up 0.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Maxim Integrated Products as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • 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 76.0% when compared to the same quarter one year prior, rising from $79.43 million to $139.81 million.
  • The gross profit margin for MAXIM INTEGRATED PRODUCTS is rather high; currently it is at 66.55%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.17% significantly outperformed against the industry average.
  • 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 6.25 is very high and demonstrates very strong liquidity.
  • MAXIM INTEGRATED PRODUCTS reported significant earnings per share improvement in the most recent quarter compared to 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, MAXIM INTEGRATED PRODUCTS reported lower earnings of $0.72 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($1.94 versus $0.72).

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