Trade-Ideas LLC identified

Semtech

(

SMTC

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Semtech as such a stock due to the following factors:

  • SMTC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.5 million.
  • SMTC has traded 86.49250000000000682121026329696178436279296875 options contracts today.
  • SMTC is making at least a new 3-day high.
  • SMTC has a PE ratio of 123.
  • SMTC is mentioned 0.58 times per day on StockTwits.
  • SMTC has not yet been mentioned on StockTwits today.
  • SMTC is currently in the upper 20% of its 1-year range.
  • SMTC is in the upper 35% of its 20-day range.
  • SMTC is in the upper 45% of its 5-day range.
  • SMTC 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 SMTC:

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products. SMTC has a PE ratio of 123. Currently there are 2 analysts that rate Semtech a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Semtech has been 421,900 shares per day over the past 30 days. Semtech has a market cap of $1.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.24 and a short float of 5.1% with 5.04 days to cover. Shares are up 18.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Semtech as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

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 Semiconductors & Semiconductor Equipment industry. The net income increased by 108.1% when compared to the same quarter one year prior, rising from -$15.44 million to $1.25 million.
  • Net operating cash flow has significantly increased by 196.27% to $34.46 million when compared to the same quarter last year. In addition, SEMTECH CORP has also vastly surpassed the industry average cash flow growth rate of 11.26%.
  • Despite currently having a low debt-to-equity ratio of 0.49, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that SMTC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.46 is high and demonstrates strong liquidity.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SEMTECH CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • SMTC has underperformed the S&P 500 Index, declining 14.40% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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