Trade-Ideas LLC identified

Computer

(

CSC

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Computer as such a stock due to the following factors:

  • CSC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.4 million.
  • CSC traded 142,017 shares today in the pre-market hours as of 8:00 AM, representing 11.2% of its average daily volume.

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More details on CSC:

Computer Sciences Corporation provides information technology (IT) and professional services and solutions primarily in North America, Europe, Asia, and Australia. The company operates through Global Business Services and Global Infrastructure Services segments. The stock currently has a dividend yield of 1.6%. CSC has a PE ratio of 18. Currently there are 2 analysts that rate Computer a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Computer has been 1.2 million shares per day over the past 30 days. Computer has a market cap of $4.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.95 and a short float of 3.6% with 3.84 days to cover. Shares are up 7.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Computer as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 113.7% when compared to the same quarter one year prior, rising from -$314.00 million to $43.00 million.
  • COMPUTER SCIENCES CORP 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, COMPUTER SCIENCES CORP swung to a loss, reporting -$0.61 versus $5.71 in the prior year. This year, the market expects an improvement in earnings ($2.49 versus -$0.61).
  • CSC, with its decline in revenue, slightly underperformed the industry average of 8.0%. Since the same quarter one year prior, revenues fell by 10.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Even though the current debt-to-equity ratio is 1.20, it is still below the industry average, suggesting that this level of debt is acceptable within the IT Services industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.35 is sturdy.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the IT Services industry and the overall market, COMPUTER SCIENCES CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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