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.

Trade-Ideas LLC identified

Telefonica Brasil

(

VIV

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Telefonica Brasil as such a stock due to the following factors:

  • VIV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.8 million.
  • VIV traded 518,288 shares today in the pre-market hours as of 8:23 AM, representing 23.4% of its average daily volume.

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More details on VIV:

Telefonica Brasil S.A. provides fixed-line telecommunications services to residential and corporate customers in Brazil. The stock currently has a dividend yield of 6%. Currently there are 4 analysts that rate Telefonica Brasil a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Telefonica Brasil has been 2.2 million shares per day over the past 30 days. Telefonica Brasil has a market cap of $18.6 billion and is part of the technology sector and telecommunications industry. Shares are down 7.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Telefonica Brasil as a

hold

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • VIV's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.73 is somewhat weak and could be cause for future problems.
  • The gross profit margin for TELEFONICA BRASIL SA is rather high; currently it is at 63.13%. Regardless of VIV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VIV's net profit margin of 13.86% compares favorably to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Diversified Telecommunication Services industry average. The net income has decreased by 21.4% when compared to the same quarter one year ago, dropping from $454.46 million to $357.19 million.
  • Net operating cash flow has declined marginally to $908.36 million or 7.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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