Trade-Ideas LLC identified

OSI Systems

(

OSIS

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

  • OSIS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.3 million.
  • OSIS traded 29,325 shares today in the pre-market hours as of 8:49 AM, representing 11% of its average daily volume.

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More details on OSIS:

OSI Systems, Inc., together with its subsidiaries, engages in the design, manufacture, and sale of specialized electronic systems and components worldwide. The company operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. OSIS has a PE ratio of 24. Currently there are 2 analysts that rate OSI Systems a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for OSI Systems has been 175,400 shares per day over the past 30 days. OSI Systems has a market cap of $1.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.10 and a short float of 2.4% with 1.89 days to cover. Shares are down 9.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates OSI Systems as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • OSI SYSTEMS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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, OSI SYSTEMS INC increased its bottom line by earning $3.17 versus $2.32 in the prior year. This year, the market expects an improvement in earnings ($3.78 versus $3.17).
  • OSIS's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
  • 41.01% is the gross profit margin for OSI SYSTEMS INC which we consider to be strong. Regardless of OSIS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.40% trails the industry average.
  • OSIS, with its decline in revenue, slightly underperformed the industry average of 0.6%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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