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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 or Stephanie Link.

Trade-Ideas LLC identified

NCR

(

NCR

) as a post-market laggard 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 $59.3 million.
  • NCR is down 2.9% today from today's close.

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More details on NCR:

NCR Corporation, a technology company, provides products and services that enable businesses to connect, interact, and transact with their customers worldwide. It operates in four segments: Financial Services, Retail Solutions, Hospitality, and Emerging Industries. NCR has a PE ratio of 12.2. Currently there are 3 analysts that rate NCR a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for NCR has been 2.4 million shares per day over the past 30 days. NCR has a market cap of $5.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.08 and a short float of 7.7% with 5.59 days to cover. Shares are down 8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates NCR as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • NCR CORP's earnings per share declined by 16.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, NCR CORP reported lower earnings of $2.67 versus $2.88 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $2.67).
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, NCR has underperformed the S&P 500 Index, declining 6.79% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • 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 on the basis of return on equity, NCR CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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