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 QLogic as such a stock due to the following factors:
- QLGC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.2 million.
- QLGC has traded 52,536 shares today.
- QLGC is up 3.4% today.
- QLGC was down 5.3% yesterday.
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More details on QLGC:
QLogic Corporation designs and supplies high performance server and storage networking infrastructure products that provide, enhance, and manage computer data communication. Its products facilitate the transfer of data and enable resource sharing between servers, networks, and storage. QLGC has a PE ratio of 28. Currently there are 4 analysts that rate QLogic a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for QLogic has been 1.1 million shares per day over the past 30 days. QLogic has a market cap of $1.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.73 and a short float of 6.7% with 3.99 days to cover. Shares are down 8.1% year-to-date as of the close of trading on Tuesday.
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rates QLogic as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.
Highlights from the ratings report include:
- QLGC 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. Along with this, the company maintains a quick ratio of 5.66, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for QLOGIC CORP is rather high; currently it is at 69.28%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, QLGC's net profit margin of 2.16% significantly trails the industry average.
- QLOGIC CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, QLOGIC CORP turned its bottom line around by earning $0.57 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($0.79 versus $0.57).
- In its most recent trading session, QLGC has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- 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 Computers & Peripherals industry. The net income has significantly decreased by 79.7% when compared to the same quarter one year ago, falling from $11.01 million to $2.24 million.
- You can view the full QLogic Ratings Report.