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

Rovi

(

ROVI

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rovi as such a stock due to the following factors:

  • ROVI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.4 million.
  • ROVI traded 1.3 million shares today in the pre-market hours as of 9:16 AM, representing 187.1% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ROVI with the Ticky from Trade-Ideas. See the FREE profile for ROVI NOW at Trade-Ideas

More details on ROVI:

Rovi Corporation provides integrated solutions for the discovery and personalization of digital entertainment to service providers and consumer electronics (CE) industry worldwide. Currently there are 4 analysts that rate Rovi a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Rovi has been 586,500 shares per day over the past 30 days. Rovi has a market cap of $2.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.59 and a short float of 4.8% with 6.89 days to cover. Shares are up 7.2% 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 Rovi as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year.

Highlights from the ratings report include:

  • 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 38.7% when compared to the same quarter one year prior, rising from -$11.47 million to -$7.03 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.0%. Since the same quarter one year prior, revenues slightly increased by 4.1%. 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.
  • ROVI CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, ROVI CORP turned its bottom line around by earning $0.20 versus -$0.19 in the prior year. This year, the market expects an improvement in earnings ($1.72 versus $0.20).
  • Net operating cash flow has decreased to $25.19 million or 12.60% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ROVI CORP has marginally lower results.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, ROVI CORP's return on equity significantly trails that of both the industry average and 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.

null