Trade-Ideas LLC identified

Tower Semiconductor

(

TSEM

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tower Semiconductor as such a stock due to the following factors:

  • TSEM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.1 million.
  • TSEM has traded 100,458 shares today.
  • TSEM is trading at 2.31 times the normal volume for the stock at this time of day.
  • TSEM is trading at a new high 3.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on TSEM:

Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures analog intensive mixed-signal semiconductor devices in the United States, Asia, and Europe. Currently there are 4 analysts that rate Tower Semiconductor a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tower Semiconductor has been 417,500 shares per day over the past 30 days. Tower Semiconductor has a market cap of $964.2 million and is part of the technology sector and electronics industry. The stock has a beta of 0.85 and a short float of 2.3% with 4.74 days to cover. Shares are down 12.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tower Semiconductor as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 22.9%. 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 Semiconductors & Semiconductor Equipment industry. The net income increased by 190.3% when compared to the same quarter one year prior, rising from -$73.06 million to $65.94 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, TOWER SEMICONDUCTOR LTD has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • TSEM's debt-to-equity ratio of 0.61 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.46 is sturdy.
  • TSEM's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.21%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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