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 "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Finisar Corporation as such a stock due to the following factors:
- FNSR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $74.9 million.
- FNSR has traded 1.9 million shares today.
- FNSR is up 3.2% today.
- FNSR was down 5.9% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in FNSR with the Ticky from Trade-Ideas. See the FREE profile for FNSR NOW at Trade-Ideas
More details on FNSR:
Finisar Corporation provides optical subsystems and components for data communication and telecommunication applications in the United States, Malaysia, China, and internationally. FNSR has a PE ratio of 86.0. Currently there are 9 analysts that rate Finisar Corporation a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Finisar Corporation has been 1.9 million shares per day over the past 30 days. Finisar has a market cap of $2.2 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.93 and a short float of 12.9% with 3.32 days to cover. Shares are up 42.6% year to date as of the close of trading on Friday.
rates Finisar Corporation as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 519.7% when compared to the same quarter one year prior, rising from -$6.20 million to $26.01 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 28.9%. Since the same quarter one year prior, revenues rose by 20.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FNSR's debt-to-equity ratio is very low at 0.05 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 2.97, which clearly demonstrates the ability to cover short-term cash needs.
- 40.21% is the gross profit margin for FINISAR 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, FNSR's net profit margin of 9.77% significantly trails the industry average.
- Net operating cash flow has significantly increased by 85.81% to $20.73 million when compared to the same quarter last year. Despite an increase in cash flow, FINISAR CORP's average is still marginally south of the industry average growth rate of 89.08%.
- You can view the full Finisar Corporation Ratings Report.