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 post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified ARRIS Group as such a stock due to the following factors:
- ARRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $62.2 million.
- ARRS is down 9.3% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ARRS with the Ticky from Trade-Ideas. See the FREE profile for ARRS NOW at Trade-Ideas
More details on ARRS:
ARRIS Group, Inc. provides media entertainment and data communications solutions in the United States and internationally. The company operates in two segments, Customer Premises Equipment and Network & Cloud. ARRS has a PE ratio of 855.0. Currently there are 6 analysts that rate ARRIS Group a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for ARRIS Group has been 2.6 million shares per day over the past 30 days. ARRIS Group has a market cap of $4.9 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.73 and a short float of 2.3% with 1.23 days to cover. Shares are up 44.9% year-to-date as of the close of trading on Wednesday.
rates ARRIS Group as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- ARRS's very impressive revenue growth greatly exceeded the industry average of 0.4%. Since the same quarter one year prior, revenues leaped by 234.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 378.5% when compared to the same quarter one year prior, rising from -$14.65 million to $40.80 million.
- Powered by its strong earnings growth of 315.38% and other important driving factors, this stock has surged by 120.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- ARRIS GROUP INC reported significant earnings per share improvement in the most recent quarter compared to 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, ARRIS GROUP INC swung to a loss, reporting -$0.38 versus $0.46 in the prior year. This year, the market expects an improvement in earnings ($2.55 versus -$0.38).
- The debt-to-equity ratio of 1.27 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, ARRS's quick ratio is somewhat strong at 1.17, demonstrating the ability to handle short-term liquidity needs.
- You can view the full ARRIS Group Ratings Report.