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NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.
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Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 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 43.4% when compared to the same quarter one year prior, rising from $21.31 million to $30.56 million.
- OVTI's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, OVTI has a quick ratio of 2.27, which demonstrates the ability of the company to cover short-term liquidity needs.
- OMNIVISION TECHNOLOGIES INC has improved earnings per share by 35.0% in the most recent quarter compared to the same quarter a year ago. 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, OMNIVISION TECHNOLOGIES INC reported lower earnings of $0.80 versus $1.08 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $0.80).
OmniVision Technologies, Inc. engages in designing, developing, and marketing semiconductor image-sensor devices worldwide. OmniVision has a market cap of $952.5 million and is part of the technology sector and electronics industry. Shares are up 2.3% year to date as of the close of trading on Tuesday.
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