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 strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified International Rectifier as such a stock due to the following factors:
- IRF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.4 million.
- IRF is making at least a new 3-day high.
- IRF has a PE ratio of 37.2.
- IRF is mentioned 0.81 times per day on StockTwits.
- IRF has not yet been mentioned on StockTwits today.
- IRF is currently in the upper 20% of its 1-year range.
- IRF is in the upper 35% of its 20-day range.
- IRF is in the upper 45% of its 5-day range.
- IRF is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in IRF with the Ticky from Trade-Ideas. See the FREE profile for IRF NOW at Trade-Ideas
More details on IRF:
International Rectifier Corporation designs, manufactures, and markets power management semiconductors worldwide. It operates through six segments: Power Management Devices, Energy Saving Products, Automotive Products, Enterprise Power, HiRel, and Intellectual Property. IRF has a PE ratio of 37.2. Currently there are no analysts that rate International Rectifier a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for International Rectifier has been 1.2 million shares per day over the past 30 days. International Rectifier has a market cap of $2.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.16 and a short float of 3.8% with 3.33 days to cover. Shares are up 52.7% year-to-date as of the close of trading on Thursday.
rates International Rectifier as a
. 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 and revenue growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- INTL RECTIFIER 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, INTL RECTIFIER CORP turned its bottom line around by earning $0.81 versus -$1.29 in the prior year. This year, the market expects an improvement in earnings ($1.61 versus $0.81).
- 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 197.3% when compared to the same quarter one year prior, rising from $8.72 million to $25.93 million.
- 45.36% is the gross profit margin for INTL RECTIFIER 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, IRF's net profit margin of 9.03% significantly trails the industry average.
- Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 61.39% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, INTL RECTIFIER CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full International Rectifier Ratings Report.