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 Alliance Fiber Optic Products ( AFOP) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Alliance Fiber Optic Products as such a stock due to the following factors:
- AFOP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.5 million.
- AFOP has traded 1.0 million shares today.
- AFOP is down 3.1% today.
- AFOP was up 15.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AFOP with the Ticky from Trade-Ideas. See the FREE profile for AFOP NOW at Trade-Ideas More details on AFOP: Alliance Fiber Optic Products, Inc. designs, manufactures, and markets various fiber optic components and integrated modules for communications equipment manufacturers and service providers in North America, Europe, and Asia. The stock currently has a dividend yield of 0.6%. AFOP has a PE ratio of 29.7. Currently there are no analysts that rate Alliance Fiber Optic Products a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Alliance Fiber Optic Products has been 912,800 shares per day over the past 30 days. Alliance Fiber Optic has a market cap of $409.6 million and is part of the technology sector and electronics industry. The stock has a beta of 2.09 and a short float of 29.7% with 1.44 days to cover. Shares are up 276% 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 Alliance Fiber Optic Products as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include:
- AFOP's very impressive revenue growth greatly exceeded the industry average of 29.5%. Since the same quarter one year prior, revenues leaped by 65.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- AFOP has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.18, which clearly demonstrates the ability to cover short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, ALLIANCE FIBER OPTIC PRODUCT's return on equity exceeds that of both the industry average and the S&P 500.
- 40.70% is the gross profit margin for ALLIANCE FIBER OPTIC PRODUCT which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.49% is above that of the industry average.
- Net operating cash flow has significantly increased by 186.96% to $6.45 million when compared to the same quarter last year. In addition, ALLIANCE FIBER OPTIC PRODUCT has also vastly surpassed the industry average cash flow growth rate of 89.24%.
- You can view the full Alliance Fiber Optic Products 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.