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 new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Super Micro Computer as such a stock due to the following factors:
- SMCI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.7 million.
- SMCI has traded 7,760 shares today.
- SMCI is trading at a new lifetime high.
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More details on SMCI:
Super Micro Computer, Inc., together with its subsidiaries, develops and provides high performance server solutions based on modular and open-standard architecture. SMCI has a PE ratio of 24.4. Currently there are 4 analysts that rate Super Micro Computer a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Super Micro Computer has been 492,400 shares per day over the past 30 days. Super Micro Computer has a market cap of $1.6 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 0.40 and a short float of 3.3% with 2.15 days to cover. Shares are up 100.8% year-to-date as of the close of trading on Friday.
rates Super Micro Computer as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 13.5%. Since the same quarter one year prior, revenues rose by 43.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SUPER MICRO COMPUTER 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, SUPER MICRO COMPUTER INC increased its bottom line by earning $1.16 versus $0.48 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $1.16).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 171.0% when compared to the same quarter one year prior, rising from $7.70 million to $20.86 million.
- Net operating cash flow has increased to $27.05 million or 47.73% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 35.16%.
- Powered by its strong earnings growth of 147.05% and other important driving factors, this stock has surged by 105.79% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Super Micro Computer Ratings Report.