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Trade-Ideas LLC identified
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Alcatel-Lucent as such a stock due to the following factors:
- ALU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.4 million.
- ALU traded 6.2 million shares today in the pre-market hours as of 8:12 AM, representing 72.1% of its average daily volume.
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More details on ALU:
Alcatel-Lucent provides Internet protocol (IP) and cloud networking, and ultra-broadband fixed and wireless access to service providers and their customers, enterprises, and institutions worldwide. The company operates in three segments: Core Networking, Access, and Other. Currently there are 4 analysts that rate Alcatel-Lucent a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Alcatel-Lucent has been 7.1 million shares per day over the past 30 days. Alcatel-Lucent has a market cap of $7.0 billion and is part of the technology sector and telecommunications industry. Shares are down 42% year-to-date as of the close of trading on Tuesday.
rates Alcatel-Lucent as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- ALCATEL-LUCENT reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ALCATEL-LUCENT continued to lose money by earning -$0.76 versus -$1.56 in the prior year. This year, the market expects an improvement in earnings ($0.03 versus -$0.76).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 64.8% when compared to the same quarter one year prior, rising from -$1,158.23 million to -$407.33 million.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.5%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- ALU's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 25.94%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The debt-to-equity ratio is very high at 2.39 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, ALU maintains a poor quick ratio of 0.99, which illustrates the inability to avoid short-term cash problems.
- You can view the full Alcatel-Lucent Ratings Report.