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 Computer as such a stock due to the following factors:
- CSC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $92.3 million.
- CSC is down 5.3% today from today's close.
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More details on CSC:
Computer Sciences Corporation provides information technology (IT) and professional services and solutions in North America, Europe, Asia, and Australia. The company operates through Global Business Services, Global Infrastructure Services, and North American Public Sector segments. The stock currently has a dividend yield of 1.4%. CSC has a PE ratio of 15.2. Currently there are 2 analysts that rate Computer a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for Computer has been 1.1 million shares per day over the past 30 days. Computer has a market cap of $8.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.50 and a short float of 5.1% with 4.37 days to cover. Shares are up 3.1% year-to-date as of the close of trading on Friday.
rates Computer as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- COMPUTER SCIENCES CORP has improved earnings per share by 16.8% 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. During the past fiscal year, COMPUTER SCIENCES CORP increased its bottom line by earning $4.21 versus $3.07 in the prior year. This year, the market expects an improvement in earnings ($4.63 versus $4.21).
- The debt-to-equity ratio is somewhat low, currently at 0.75, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, CSC has a quick ratio of 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Despite the weak revenue results, CSC has outperformed against the industry average of 20.8%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Computer Ratings Report.