Trade-Ideas LLC identified

VMware

(

VMW

) as a post-market laggard 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 $106.4 million.
  • VMW is down 4.2% today from today's close.

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More details on VMW:

VMware, Inc. provides virtualization and cloud infrastructure solutions in the United States and internationally. VMW has a PE ratio of 25. Currently there are 9 analysts that rate VMware a buy, 1 analyst rates it a sell, and 19 rate it a hold.

The average volume for VMware has been 2.3 million shares per day over the past 30 days. VMware has a market cap of $23.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.74 and a short float of 24.7% with 10.53 days to cover. Shares are up 0.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates VMware as a

buy

. 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, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel its 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 8.8%. Since the same quarter one year prior, revenues slightly increased by 5.2%. 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 0.18 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 2.39, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for VMWARE INC is currently very high, coming in at 89.74%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.13% trails the industry average.
  • Net operating cash flow has slightly increased to $720.00 million or 5.41% when compared to the same quarter last year. Despite an increase in cash flow, VMWARE INC's cash flow growth rate is still lower than the industry average growth rate of 21.84%.

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