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 Advanced Micro Devices ( AMD) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Advanced Micro Devices as such a stock due to the following factors:
- AMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $124.1 million.
- AMD traded 6.0 million shares today in the pre-market hours as of 8:56 AM, representing 17.4% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AMD with the Ticky from Trade-Ideas. See the FREE profile for AMD NOW at Trade-Ideas More details on AMD: Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates in two segments, Computing Solutions and Graphics. Currently there are 7 analysts that rate Advanced Micro Devices a buy, 2 analysts rate it a sell, and 13 rate it a hold. The average volume for Advanced Micro Devices has been 30.1 million shares per day over the past 30 days. Advanced Micro Devices has a market cap of $2.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.35 and a short float of 17.9% with 3.17 days to cover. Shares are up 58.3% 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 Advanced Micro Devices as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and feeble growth in its earnings per share. Highlights from the ratings report include:
- 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 300.0% when compared to the same quarter one year ago, falling from $37.00 million to -$74.00 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ADVANCED MICRO DEVICES's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$35.00 million or 143.20% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The debt-to-equity ratio is very high at 5.70 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, AMD's quick ratio is somewhat strong at 1.13, demonstrating the ability to handle short-term liquidity needs.
- ADVANCED MICRO DEVICES has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ADVANCED MICRO DEVICES swung to a loss, reporting -$1.59 versus $0.65 in the prior year. This year, the market expects an improvement in earnings (-$0.15 versus -$1.59).
- You can view the full Advanced Micro Devices 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.