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

Vasco Data Security International

(

VDSI

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

  • VDSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.4 million.
  • VDSI has traded 103,848 shares today.
  • VDSI is down 3.2% today.
  • VDSI was up 8.5% yesterday.

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More details on VDSI:

VASCO Data Security International, Inc., together with its subsidiaries, designs, develops, and markets security systems to secure and manage access to user digital assets worldwide. VDSI has a PE ratio of 32.6. Currently there are 2 analysts that rate Vasco Data Security International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vasco Data Security International has been 905,500 shares per day over the past 30 days. Vasco Data Security International has a market cap of $827.8 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.45 and a short float of 17% with 5.65 days to cover. Shares are down 19.7% year-to-date as of the close of trading on Thursday.

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 Vasco Data Security International as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues rose by 34.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VDSI 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 3.47, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 250.00% and other important driving factors, this stock has surged by 185.67% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains 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 Software industry. The net income increased by 236.0% when compared to the same quarter one year prior, rising from $3.32 million to $11.16 million.
  • The gross profit margin for VASCO DATA SEC INTL INC is rather high; currently it is at 68.32%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.20% trails the industry average.

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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