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

CalAmp

(

CAMP

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified CalAmp as such a stock due to the following factors:

  • CAMP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.5 million.
  • CAMP has traded 121,837 shares today.
  • CAMP is up 3.4% today.
  • CAMP was down 10% yesterday.

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More details on CAMP:

CalAmp Corp. develops and markets wireless communications products and solutions for various applications worldwide. It operates in two segments, Wireless DataCom and Satellite. CAMP has a PE ratio of 54.9. Currently there are 5 analysts that rate CalAmp a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for CalAmp has been 706,700 shares per day over the past 30 days. CalAmp has a market cap of $714.5 million and is part of the technology sector and telecommunications industry. The stock has a beta of 1.11 and a short float of 11.4% with 4.99 days to cover. Shares are down 29.5% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CalAmp as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • CAMP's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CAMP has a quick ratio of 1.64, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 35.95% is the gross profit margin for CALAMP CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CAMP's net profit margin of 6.35% significantly trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.4%. Since the same quarter one year prior, revenues slightly dropped by 0.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • CALAMP CORP's earnings per share declined by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CALAMP CORP reported lower earnings of $0.33 versus $1.46 in the prior year. This year, the market expects an improvement in earnings ($0.92 versus $0.33).
  • Net operating cash flow has declined marginally to $5.13 million or 8.32% when compared to the same quarter last year. Despite a decrease in cash flow CALAMP CORP is still fairing well by exceeding its industry average cash flow growth rate of -31.96%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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