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 "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Maxim Integrated Products as such a stock due to the following factors:
- MXIM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $98.4 million.
- MXIM has traded 3.5 million shares today.
- MXIM is up 3% today.
- MXIM was down 10.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MXIM with the Ticky from Trade-Ideas. See the FREE profile for MXIM NOW at Trade-Ideas
More details on MXIM:
Maxim Integrated Products, Inc. designs, develops, manufactures, and markets various linear and mixed-signal integrated circuits worldwide. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. The stock currently has a dividend yield of 3.4%. MXIM has a PE ratio of 26.8. Currently there are 8 analysts that rate Maxim Integrated Products a buy, no analysts rate it a sell, and 12 rate it a hold.
The average volume for Maxim Integrated Products has been 2.3 million shares per day over the past 30 days. Maxim Integrated has a market cap of $9.3 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.70 and a short float of 2.2% with 1.37 days to cover. Shares are up 5.3% year-to-date as of the close of trading on Friday.
rates Maxim Integrated Products as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- MAXIM INTEGRATED PRODUCTS' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MAXIM INTEGRATED PRODUCTS increased its bottom line by earning $1.52 versus $1.17 in the prior year. This year, the market expects an improvement in earnings ($2.07 versus $1.52).
- Despite currently having a low debt-to-equity ratio of 0.42, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.92 is very high and demonstrates very strong liquidity.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
- Net operating cash flow has remained constant at $211.70 million with no significant change when compared to the same quarter last year. Even though MAXIM INTEGRATED PRODUCTS's cash flow growth was minimal, the firm managed to surpass its industry's average growth rate of -89.41%.
- You can view the full Maxim Integrated Products Ratings Report.