Trade-Ideas: Broadcom Corporation (BRCM) Is Today's Pre-Market Mover With Heavy Volume Stock

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 Broadcom Corporation ( BRCM) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Broadcom Corporation as such a stock due to the following factors:

  • BRCM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $303.6 million.
  • BRCM traded 1.1 million shares today in the pre-market hours as of 5:56 AM, representing 10.1% of its average daily volume.

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More details on BRCM:

Broadcom Corporation provides semiconductor solutions for wired and wireless communications. Its products offer voice, video, data, and multimedia connectivity in the home, office, and mobile environments. The stock currently has a dividend yield of 1.3%. BRCM has a PE ratio of 23.6. Currently there are 30 analysts that rate Broadcom Corporation a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Broadcom Corporation has been 7.0 million shares per day over the past 30 days. Broadcom has a market cap of $17.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.27 and a short float of 4.3% with 2.14 days to cover. Shares are up 1.4% year to date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Broadcom Corporation 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, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 9.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BRCM's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, BRCM has a quick ratio of 1.92, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 117.0% when compared to the same quarter one year prior, rising from $88.00 million to $191.00 million.
  • Net operating cash flow has slightly increased to $388.00 million or 5.43% when compared to the same quarter last year. In addition, BROADCOM CORP has also vastly surpassed the industry average cash flow growth rate of -79.08%.

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