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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

Avago Technologies

(

AVGO

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Avago Technologies as such a stock due to the following factors:

  • AVGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $181.6 million.
  • AVGO has traded 42,957 shares today.
  • AVGO is trading at a new lifetime high.

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More details on AVGO:

Avago Technologies Limited designs, develops, and supplies semiconductor devices with a focus on analog III-V based products. The company operates through four segments: Wireless Communications, Wired Infrastructure, Enterprise Storage, and Industrial & Other segments. The stock currently has a dividend yield of 1.3%. AVGO has a PE ratio of 108.1. Currently there are 15 analysts that rate Avago Technologies a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Recommends

The average volume for Avago Technologies has been 2.0 million shares per day over the past 30 days. Avago has a market cap of $27.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.41 and a short float of 1% with 1.27 days to cover. Shares are up 6.1% year-to-date as of the close of trading on Monday.

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

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Avago Technologies as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • AVGO's very impressive revenue growth greatly exceeded the industry average of 10.6%. Since the same quarter one year prior, revenues leaped by 118.2%. 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.
  • Net operating cash flow has significantly increased by 82.29% to $381.00 million when compared to the same quarter last year. In addition, AVAGO TECHNOLOGIES LTD has also vastly surpassed the industry average cash flow growth rate of -80.33%.
  • The gross profit margin for AVAGO TECHNOLOGIES LTD is rather high; currently it is at 61.12%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, AVGO's net profit margin of 8.38% significantly trails the industry average.
  • Compared to its closing price of one year ago, AVGO's share price has jumped by 84.07%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
  • AVAGO TECHNOLOGIES LTD's earnings per share declined by 26.5% 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 two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, AVAGO TECHNOLOGIES LTD reported lower earnings of $1.16 versus $2.19 in the prior year. This year, the market expects an improvement in earnings ($7.51 versus $1.16).

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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