Trade-Ideas LLC identified

VMWare

(

VMW

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

  • VMW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $117.1 million.
  • VMW is up 4.4% today from today's close.

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More details on VMW:

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMW has a PE ratio of 22. Currently there are 12 analysts that rate VMWare a buy, no analysts rate it a sell, and 18 rate it a hold.

The average volume for VMWare has been 2.0 million shares per day over the past 30 days. VMWare has a market cap of $6.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.30 and a short float of 14.8% with 5.44 days to cover. Shares are down 13.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates VMWare as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 16.5%. Since the same quarter one year prior, revenues rose by 10.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VMW's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, VMW has a quick ratio of 2.20, which demonstrates the ability of the company to cover short-term liquidity needs.
  • VMWARE INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. 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, VMWARE INC reported lower earnings of $2.04 versus $2.34 in the prior year. This year, the market expects an improvement in earnings ($4.06 versus $2.04).
  • VMW'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 38.00%, 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Net operating cash flow has decreased to $412.00 million or 32.01% 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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