Trade-Ideas LLC identified

PDF Solutions

(

PDFS

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified PDF Solutions as such a stock due to the following factors:

  • PDFS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.7 million.
  • PDFS has traded 9.358200000000000073896444519050419330596923828125 options contracts today.
  • PDFS is making at least a new 3-day high.
  • PDFS has a PE ratio of 58.
  • PDFS is mentioned 0.71 times per day on StockTwits.
  • PDFS has not yet been mentioned on StockTwits today.
  • PDFS is currently in the upper 20% of its 1-year range.
  • PDFS is in the upper 35% of its 20-day range.
  • PDFS is in the upper 45% of its 5-day range.
  • PDFS 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.

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More details on PDFS:

PDF Solutions, Inc. provides infrastructure technologies and services to enhance yield and optimize performance of integrated circuits (IC) in the United States, Germany, South Korea, and rest of the world. PDFS has a PE ratio of 58. Currently there are 3 analysts that rate PDF Solutions a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for PDF Solutions has been 121,000 shares per day over the past 30 days. PDF has a market cap of $503.2 million and is part of the technology sector and computer software & services industry. The stock has a beta of 1.43 and a short float of 2.4% with 2.94 days to cover. Shares are up 48.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates PDF Solutions as a

hold

. 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • PDFS 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 10.85, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for PDF SOLUTIONS INC is rather high; currently it is at 62.74%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.22% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, PDF SOLUTIONS INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $3.66 million or 76.57% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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