Trade-Ideas LLC identified

Avago Technologies

(

AVGO

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

  • AVGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $898.0 million.
  • AVGO traded 11,697 shares today in the pre-market hours as of 9:28 AM.
  • AVGO is up 2.4% today from yesterday's close.

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More details on AVGO:

Avago Technologies Limited designs, develops, and supplies a range of semiconductor devices with a focus on analog III-V based products, and complex digital and mixed signal complementary metal oxide semiconductor based devices. The stock currently has a dividend yield of 1.4%. AVGO has a PE ratio of 25. Currently there are 21 analysts that rate Avago Technologies a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Recommends

The average volume for Avago Technologies has been 4.0 million shares per day over the past 30 days. Avago has a market cap of $34.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.81 and a short float of 13.2% with 4.26 days to cover. Shares are down 14.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Avago Technologies as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 15.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AVAGO TECHNOLOGIES LTD 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 two years. We feel that this trend should continue. During the past fiscal year, AVAGO TECHNOLOGIES LTD increased its bottom line by earning $4.90 versus $1.16 in the prior year. This year, the market expects an improvement in earnings ($9.66 versus $4.90).
  • 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 217.8% when compared to the same quarter one year prior, rising from $135.00 million to $429.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, AVAGO TECHNOLOGIES LTD's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has significantly increased by 52.75% to $582.00 million when compared to the same quarter last year. In addition, AVAGO TECHNOLOGIES LTD has also vastly surpassed the industry average cash flow growth rate of -75.28%.

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