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

RF Micro Devices

(

RFMD

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified RF Micro Devices as such a stock due to the following factors:

  • RFMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.6 million.
  • RFMD traded 13,284 shares today in the pre-market hours as of 9:29 AM.
  • RFMD is up 2.3% today from yesterday's close.

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More details on RFMD:

RF Micro Devices, Inc. is engaged in the design, development, manufacture, and marketing of radio frequency (RF) solutions for original equipment manufacturers and original design manufacturers in wireless and wired communications applications in the United States and internationally. RFMD has a PE ratio of 41.9. Currently there are 10 analysts that rate RF Micro Devices a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Recommends

The average volume for RF Micro Devices has been 11.7 million shares per day over the past 30 days. RF Micro Devices has a market cap of $4.3 billion and is part of the technology sector and electronics industry. Shares are up 190.9% year-to-date as of the close of trading on Wednesday.

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 RF Micro Devices as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • RF MICRO DEVICES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RF MICRO DEVICES INC turned its bottom line around by earning $0.05 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($1.13 versus $0.05).
  • 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 974.5% when compared to the same quarter one year prior, rising from $5.89 million to $63.31 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 16.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 172.89% to $58.70 million when compared to the same quarter last year. In addition, RF MICRO DEVICES INC has also vastly surpassed the industry average cash flow growth rate of 11.46%.
  • The gross profit margin for RF MICRO DEVICES INC is rather high; currently it is at 51.48%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.45% 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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