Trade-Ideas LLC identified

NCR

(

NCR

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified NCR as such a stock due to the following factors:

  • NCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.8 million.
  • NCR has traded 53,410 shares today.
  • NCR is down 3.3% today.
  • NCR was up 7.9% yesterday.

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More details on NCR:

NCR Corporation, a technology company, provides solutions and services that enable businesses to connect, interact, and transact with their customers worldwide. The company operates through four segments: Financial Services, Retail Solutions, Hospitality, and Emerging Industries. Currently there are 2 analysts that rate NCR a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Recommends

The average volume for NCR has been 1.8 million shares per day over the past 30 days. NCR has a market cap of $4.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.33 and a short float of 2.3% with 1.63 days to cover. Shares are down 16.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates NCR as a

hold

. Among the primary strengths of the company is its growth in net income. At the same time, however, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

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 Computers & Peripherals industry. The net income increased by 553.3% when compared to the same quarter one year prior, rising from $15.00 million to $98.00 million.
  • NCR CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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, NCR CORP reported lower earnings of $1.06 versus $2.67 in the prior year. This year, the market expects an improvement in earnings ($2.68 versus $1.06).
  • NCR, with its decline in revenue, underperformed when compared the industry average of 25.1%. Since the same quarter one year prior, revenues slightly dropped by 2.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Currently the debt-to-equity ratio of 1.95 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, NCR maintains a poor quick ratio of 0.94, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, NCR CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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