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
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified FormFactor as such a stock due to the following factors:
- FORM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.5 million.
- FORM has traded 78,647 shares today.
- FORM is trading at 2.32 times the normal volume for the stock at this time of day.
- FORM is trading at a new high 3.04% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in FORM with the Ticky from Trade-Ideas. See the FREE profile for FORM NOW at Trade-Ideas
More details on FORM:
FormFactor, Inc. designs, develops, manufactures, sells, and supports semiconductor wafer probe card products and solutions worldwide. Currently there are 4 analysts that rate FormFactor a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for FormFactor has been 345,700 shares per day over the past 30 days. FormFactor has a market cap of $483.4 million and is part of the technology sector and electronics industry. The stock has a beta of 0.93 and a short float of 3.8% with 4.63 days to cover. Shares are up 40.1% year-to-date as of the close of trading on Tuesday.
rates FormFactor as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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 Semiconductors & Semiconductor Equipment industry. The net income increased by 97.4% when compared to the same quarter one year prior, rising from -$10.71 million to -$0.28 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 slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FORM 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 4.37, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 42.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FORM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has significantly increased by 95.19% to $5.94 million when compared to the same quarter last year. In addition, FORMFACTOR INC has also vastly surpassed the industry average cash flow growth rate of 11.94%.
- You can view the full FormFactor Ratings Report.