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 Teradata Corporation ( TDC) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Teradata Corporation as such a stock due to the following factors:
- TDC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $87.7 million.
- TDC is down 8.5% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TDC with the Ticky from Trade-Ideas. See the FREE profile for TDC NOW at Trade-Ideas More details on TDC: Teradata Corporation provides analytic data solutions worldwide. The company offers data warehousing solutions that include software, hardware, and related business consulting and support services. TDC has a PE ratio of 25.9. Currently there are 10 analysts that rate Teradata Corporation a buy, 2 analysts rate it a sell, and 5 rate it a hold. The average volume for Teradata Corporation has been 1.4 million shares per day over the past 30 days. Teradata has a market cap of $9.5 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.14 and a short float of 7.8% with 7.11 days to cover. Shares are down 5.6% year to date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Teradata 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 and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 15.3%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- TDC's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TDC has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
- TERADATA CORP reported flat earnings per share in the most recent 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, TERADATA CORP increased its bottom line by earning $2.44 versus $2.06 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.44).
- The gross profit margin for TERADATA CORP is rather high; currently it is at 62.09%. Regardless of TDC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 16.11% trails the industry average.
- Net operating cash flow has declined marginally to $140.00 million or 7.89% when compared to the same quarter last year. Despite a decrease in cash flow TERADATA CORP is still fairing well by exceeding its industry average cash flow growth rate of -22.55%.
- You can view the full Teradata Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.