Trade-Ideas LLC identified

OmniVision Technologies

(

OVTI

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified OmniVision Technologies as such a stock due to the following factors:

  • OVTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.7 million.
  • OVTI has traded 3040.6300000000001091393642127513885498046875 options contracts today.
  • OVTI is making at least a new 3-day high.
  • OVTI has a PE ratio of 34.
  • OVTI is mentioned 0.68 times per day on StockTwits.
  • OVTI has not yet been mentioned on StockTwits today.
  • OVTI is currently in the upper 20% of its 1-year range.
  • OVTI is in the upper 35% of its 20-day range.
  • OVTI is in the upper 45% of its 5-day range.
  • OVTI is currently trading above yesterday's high.

TST Recommends

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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

More details on OVTI:

OmniVision Technologies, Inc. designs, develops, manufactures, and markets semiconductor image-sensor devices worldwide. OVTI has a PE ratio of 34. Currently there are no analysts that rate OmniVision Technologies a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for OmniVision Technologies has been 875,100 shares per day over the past 30 days. OmniVision has a market cap of $1.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.73 and a short float of 3.6% with 1.77 days to cover. Shares are down 0.3% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates OmniVision Technologies as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:

  • OVTI's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.66, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 948.00% to $23.16 million when compared to the same quarter last year. In addition, OMNIVISION TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of -75.28%.
  • OVTI, with its decline in revenue, slightly underperformed the industry average of 3.5%. Since the same quarter one year prior, revenues fell by 12.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The gross profit margin for OMNIVISION TECHNOLOGIES INC is rather low; currently it is at 23.62%. Regardless of OVTI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, OVTI's net profit margin of 4.06% is significantly lower than the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.