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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Synaptics as such a stock due to the following factors:
- SYNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.9 million.
- SYNA has traded 690,585 shares today.
- SYNA traded in a range 209.3% of the normal price range with a price range of $4.59.
- SYNA traded below its daily resistance level (quality: 21 days, meaning that the stock is crossing a resistance level set by the last 21 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on SYNA:
Synaptics Incorporated develops, markets, and sells custom-designed human interface solutions for electronic devices and products primarily in China, South Korea, Taiwan, Japan, and the United States. SYNA has a PE ratio of 15.0. Currently there are 8 analysts that rate Synaptics a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Synaptics has been 712,200 shares per day over the past 30 days. Synaptics has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.92 and a short float of 23.7% with 3.81 days to cover. Shares are up 45% year to date as of the close of trading on Friday.
rates Synaptics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. 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:
- SYNA's very impressive revenue growth greatly exceeded the industry average of 8.2%. Since the same quarter one year prior, revenues leaped by 67.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SYNA's debt-to-equity ratio is very low at 0.00 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 3.37, which clearly demonstrates the ability to cover short-term cash needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SYNAPTICS INC's return on equity exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 258.33% and other important driving factors, this stock has surged by 123.86% 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, SYNA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SYNAPTICS 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, SYNAPTICS INC increased its bottom line by earning $2.87 versus $1.59 in the prior year. This year, the market expects an improvement in earnings ($3.82 versus $2.87).
- You can view the full Synaptics Ratings Report.