Synchronoss Technologies (SNCR) Showing Signs Of Perilous Reversal Today

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 Synchronoss Technologies ( SNCR) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Synchronoss Technologies as such a stock due to the following factors:

  • SNCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.6 million.
  • SNCR has traded 882,803 shares today.
  • SNCR is down 5.4% today.
  • SNCR was up 9.7% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SNCR with the Ticky from Trade-Ideas. See the FREE profile for SNCR NOW at Trade-Ideas

More details on SNCR:

Synchronoss Technologies, Inc. provides software-based activation and personal cloud solutions for connected devices. SNCR has a PE ratio of 101.8. Currently there are 8 analysts that rate Synchronoss Technologies a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Synchronoss Technologies has been 263,200 shares per day over the past 30 days. Synchronoss has a market cap of $1.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.11 and a short float of 16% with 7.50 days to cover. Shares are up 64.2% 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 Synchronoss Technologies 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, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.8%. Since the same quarter one year prior, revenues rose by 25.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SNCR's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SNCR has a quick ratio of 1.69, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 87.38% to $18.10 million when compared to the same quarter last year. In addition, SYNCHRONOSS TECHNOLOGIES has also vastly surpassed the industry average cash flow growth rate of -4.15%.
  • Compared to its closing price of one year ago, SNCR's share price has jumped by 68.96%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • SYNCHRONOSS TECHNOLOGIES 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. 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, SYNCHRONOSS TECHNOLOGIES increased its bottom line by earning $0.70 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($1.34 versus $0.70).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home