Trade-Ideas LLC identified

Taser International

(

TASR

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Taser International as such a stock due to the following factors:

  • TASR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.0 million.
  • TASR has traded 511,541 shares today.
  • TASR is down 3.1% today.
  • TASR was up 6.2% yesterday.

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More details on TASR:

TASER International, Inc. develops, manufactures, and sells conducted electrical weapons (CEWs) worldwide. It operates through two segments, TASER Weapons and AXON. TASR has a PE ratio of 46. Currently there are 3 analysts that rate Taser International a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Taser International has been 1.9 million shares per day over the past 30 days. Taser International has a market cap of $906.0 million and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.81 and a short float of 26.6% with 7.44 days to cover. Shares are down 32.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Taser International as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 13.6%. 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.
  • TASR'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 3.63, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $19.35 million or 16.00% when compared to the same quarter last year. Despite an increase in cash flow, TASER INTERNATIONAL INC's average is still marginally south of the industry average growth rate of 21.62%.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Aerospace & Defense industry. The net income has significantly decreased by 79.9% when compared to the same quarter one year ago, falling from $7.56 million to $1.52 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.01%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 78.57% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, TASR is still more expensive than most of the other companies in its industry.

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