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 an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified VMWare as such a stock due to the following factors:
- VMW has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 3.84 mentions/day.
- VMW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $161.4 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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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 40.0. Currently there are 14 analysts that rate VMWare a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for VMWare has been 1.7 million shares per day over the past 30 days. VMWare has a market cap of $10.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.30 and a short float of 12.8% with 5.27 days to cover. Shares are down 2.3% year-to-date as of the close of trading on Tuesday.
rates VMWare as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 26.1%. Since the same quarter one year prior, revenues rose by 17.6%. 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.
- 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 2.19, which demonstrates the ability of the company to cover short-term liquidity needs.
- VMWARE INC's earnings per share declined by 25.0% 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 increased its bottom line by earning $2.34 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($3.54 versus $2.34).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 25.8% when compared to the same quarter one year ago, falling from $261.30 million to $194.00 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Software industry and the overall market, VMWARE INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full VMWare Ratings Report.