Stock To Watch: Taser International (TASR) In Perilous Reversal

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

  • TASR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.5 million.
  • TASR has traded 266,538 shares today.
  • TASR is down 3% today.
  • TASR was up 8.8% yesterday.

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More details on TASR:

TASER International, Inc. engages in the development, manufacture, and sale of conducted electrical weapons (CEWs) for use in law enforcement, federal, military, corrections, private security, and personal defense markets worldwide. TASR has a PE ratio of 48.5. Currently there are 2 analysts that rate Taser International a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Taser International has been 1.7 million shares per day over the past 30 days. Taser International has a market cap of $804.9 million and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of -0.21 and a short float of 5.8% with 2.06 days to cover. Shares are up 73.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Taser International 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 22.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TASR's debt-to-equity ratio is very low at 0.00 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 3.08, which clearly demonstrates the ability to cover short-term cash needs.
  • TASER INTERNATIONAL INC has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TASER INTERNATIONAL INC turned its bottom line around by earning $0.27 versus -$0.13 in the prior year. This year, the market expects an improvement in earnings ($0.32 versus $0.27).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 39.1% when compared to the same quarter one year prior, rising from $3.68 million to $5.11 million.
  • The gross profit margin for TASER INTERNATIONAL INC is rather high; currently it is at 65.87%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.52% is above that of the industry average.

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