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 Altera ( ALTR) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Altera as such a stock due to the following factors:
- ALTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $67.2 million.
- ALTR is down 3.1% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ALTR with the Ticky from Trade-Ideas. See the FREE profile for ALTR NOW at Trade-Ideas More details on ALTR: Altera Corporation, a semiconductor company, designs, manufactures, and markets programmable logic devices (PLD), HardCopy application-specific integrated circuit (ASIC) devices, pre-defined design building blocks, and proprietary development software. The stock currently has a dividend yield of 1.6%. ALTR has a PE ratio of 23.9. Currently there are 10 analysts that rate Altera a buy, no analysts rate it a sell, and 9 rate it a hold. The average volume for Altera has been 3.0 million shares per day over the past 30 days. Altera has a market cap of $11.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.35 and a short float of 2% with 3.40 days to cover. Shares are up 8.6% 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 Altera as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Highlights from the ratings report include:
- ALTR'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. Along with this, the company maintains a quick ratio of 5.43, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for ALTERA CORP is currently very high, coming in at 70.38%. Regardless of ALTR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ALTR's net profit margin of 24.06% compares favorably to the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.8%. Since the same quarter one year prior, revenues slightly dropped by 9.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- 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. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ALTERA CORP's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full Altera 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.