Trade-Ideas LLC identified

FireEye

(

FEYE

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified FireEye as such a stock due to the following factors:

  • FEYE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $129.0 million.
  • FEYE is up 2% today from today's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in FEYE with the Ticky from Trade-Ideas. See the FREE profile for FEYE NOW at Trade-Ideas

More details on FEYE:

FireEye, Inc., together with its subsidiaries, provides cybersecurity solutions for detecting, preventing, and resolving cyber-attacks. Currently there are 9 analysts that rate FireEye a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for FireEye has been 5.9 million shares per day over the past 30 days. FireEye has a market cap of $2.4 billion and is part of the technology sector and computer software & services industry. Shares are down 25.7% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FireEye as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Software industry average. The net income has significantly decreased by 28.8% when compared to the same quarter one year ago, falling from -$105.73 million to -$136.15 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, FIREEYE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Looking at the price performance of FEYE's shares over the past 12 months, there is not much good news to report: the stock is down 69.15%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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.
  • FIREEYE INC's earnings per share declined by 20.8% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, FIREEYE INC reported poor results of -$3.50 versus -$3.13 in the prior year. This year, the market expects an improvement in earnings (-$1.29 versus -$3.50).
  • The gross profit margin for FIREEYE INC is rather high; currently it is at 65.81%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, FEYE's net profit margin of -73.68% significantly underperformed when compared to the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.