Trade-Ideas LLC identified

Monolithic Power Systems

(

MPWR

) 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 $14.2 million.
  • MPWR has traded 87.074600000000003774403012357652187347412109375 options contracts today.
  • MPWR is making at least a new 3-day high.
  • MPWR has a PE ratio of 72.
  • MPWR is mentioned 0.84 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. designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for communications, storage and computing, consumer, and industrial market segments. The stock currently has a dividend yield of 1.3%. MPWR has a PE ratio of 72. Currently there are 7 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 311,700 shares per day over the past 30 days. Monolithic Power Systems has a market cap of $2.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.37 and a short float of 3.2% with 4.92 days to cover. Shares are down 1.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Monolithic Power Systems as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.2%. Since the same quarter one year prior, revenues rose by 14.8%. 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 6.14, which clearly demonstrates the ability to cover short-term cash needs.
  • 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 14.1% when compared to the same quarter one year prior, going from $8.86 million to $10.11 million.
  • Net operating cash flow has increased to $24.34 million or 18.50% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.95%.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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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