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 Broadcom Corporation ( BRCM) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Broadcom Corporation as such a stock due to the following factors:
- BRCM has 20x the normal benchmarked social activity for this time of the day compared to its average of 5.44 mentions/day.
- BRCM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $232.0 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in BRCM with the Ticky from Trade-Ideas. See the FREE profile for BRCM NOW at Trade-Ideas More details on BRCM: Broadcom Corporation provides semiconductor solutions for wired and wireless communications. Its products offer voice, video, data, and multimedia connectivity in the home, office, and mobile environments. The stock currently has a dividend yield of 1.6%. BRCM has a PE ratio of 31.4. Currently there are 21 analysts that rate Broadcom Corporation a buy, 1 analyst rates it a sell, and 11 rate it a hold. The average volume for Broadcom Corporation has been 8.9 million shares per day over the past 30 days. Broadcom has a market cap of $14.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.77 and a short float of 2.4% with 1.51 days to cover. Shares are down 17.8% 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 Broadcom Corporation as a hold. 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 increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 0.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although BRCM's debt-to-equity ratio of 0.21 is very low, it is currently higher than that of the industry average. To add to this, BRCM has a quick ratio of 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
- BROADCOM CORP has improved earnings per share by 44.7% in the most recent quarter compared to 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, BROADCOM CORP reported lower earnings of $1.24 versus $1.64 in the prior year. This year, the market expects an improvement in earnings ($2.63 versus $1.24).
- BRCM has underperformed the S&P 500 Index, declining 15.59% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- 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. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, BROADCOM CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Broadcom 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.