Today's Dead Cat Bounce Stock: Intersil Corporation (ISIL) - TheStreet

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

Intersil Corporation

(

ISIL

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

  • ISIL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.3 million.
  • ISIL has traded 56,022 shares today.
  • ISIL is up 3.8% today.
  • ISIL was down 10.5% yesterday.

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More details on ISIL:

Intersil Corporation designs and develops power management and precision analog integrated circuits (ICs) for applications in the industrial and infrastructure, consumer, and personal computing markets. The stock currently has a dividend yield of 3.4%. ISIL has a PE ratio of 83.0. Currently there are 4 analysts that rate Intersil Corporation a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Intersil Corporation has been 1.1 million shares per day over the past 30 days. Intersil has a market cap of $1.8 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.63 and a short float of 3.3% with 2.32 days to cover. Shares are up 22.7% year-to-date as of the close of trading on Wednesday.

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 Intersil Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • INTERSIL CORP 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 year. We feel that this trend should continue. During the past fiscal year, INTERSIL CORP turned its bottom line around by earning $0.03 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings ($0.75 versus $0.03).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 269.8% when compared to the same quarter one year prior, rising from -$8.18 million to $13.89 million.
  • ISIL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ISIL has a quick ratio of 2.46, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for INTERSIL CORP is rather high; currently it is at 61.80%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ISIL's net profit margin of 9.66% significantly trails the industry average.
  • Powered by its strong earnings growth of 266.66% and other important driving factors, this stock has surged by 29.41% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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