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.

Trade-Ideas LLC identified

KLA-Tencor

(

KLAC

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified KLA-Tencor as such a stock due to the following factors:

  • KLAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $82.6 million.
  • KLAC is down 4% today from today's close.

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More details on KLAC:

KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions worldwide. The stock currently has a dividend yield of 3.9%. KLAC has a PE ratio of 24. Currently there are 5 analysts that rate KLA-Tencor a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for KLA-Tencor has been 1.3 million shares per day over the past 30 days. KLA-Tencor has a market cap of $8.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.67 and a short float of 2.9% with 2.56 days to cover. Shares are down 26.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates KLA-Tencor as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • 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. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, KLA-TENCOR CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has slightly increased to $242.42 million or 1.97% when compared to the same quarter last year. In addition, KLA-TENCOR CORP has also vastly surpassed the industry average cash flow growth rate of -84.46%.
  • The gross profit margin for KLA-TENCOR CORP is rather high; currently it is at 59.43%. Regardless of KLAC'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 17.82% trails the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.88%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 33.05% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 35.3% when compared to the same quarter one year ago, falling from $203.58 million to $131.64 million.

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