Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Monolithic Power Systems as such a stock due to the following factors:
- MPWR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.5 million.
- MPWR is making at least a new 3-day high.
- MPWR has a PE ratio of 51.4.
- MPWR is mentioned 1.06 times per day on StockTwits.
- MPWR has not yet been mentioned on StockTwits today.
- MPWR is currently in the upper 20% of its 1-year range.
- MPWR is in the upper 35% of its 20-day range.
- MPWR is in the upper 45% of its 5-day range.
- MPWR is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on MPWR:
Monolithic Power Systems, Inc., a fabless semiconductor company, designs, develops, and markets analog and mixed-signal semiconductors for storage and computing, consumer electronics, communications, and industrial/automotive markets. The stock currently has a dividend yield of 1.5%. MPWR has a PE ratio of 51.4. Currently there are 5 analysts that rate Monolithic Power Systems a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Monolithic Power Systems has been 368,000 shares per day over the past 30 days. Monolithic Power Systems has a market cap of $1.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.32 and a short float of 5% with 2.75 days to cover. Shares are up 16.8% year-to-date as of the close of trading on Friday.
rates Monolithic Power Systems as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- MPWR's revenue growth has slightly outpaced the industry average of 17.7%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MPWR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 6.25, which clearly demonstrates the ability to cover short-term cash needs.
- MONOLITHIC POWER SYSTEMS INC has improved earnings per share by 14.3% 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. During the past fiscal year, MONOLITHIC POWER SYSTEMS INC increased its bottom line by earning $0.59 versus $0.43 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $0.59).
- Net operating cash flow has significantly increased by 65.04% to $25.60 million when compared to the same quarter last year. In addition, MONOLITHIC POWER SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -81.10%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 16.5% when compared to the same quarter one year prior, going from $5.49 million to $6.40 million.
- You can view the full Monolithic Power Systems Ratings Report.