Trade-Ideas: Maxim Integrated Products (MXIM) Is Today's Post-Market Leader Stock

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 Maxim Integrated Products ( MXIM) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Maxim Integrated Products as such a stock due to the following factors:

  • MXIM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $87.8 million.
  • MXIM is up 3.2% today from today's close.

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More details on MXIM:

Maxim Integrated Products, Inc. designs, develops, manufactures, and markets various linear and mixed-signal integrated circuits worldwide. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. The stock currently has a dividend yield of 3.6%. MXIM has a PE ratio of 20.0. Currently there are 8 analysts that rate Maxim Integrated Products a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for Maxim Integrated Products has been 3.0 million shares per day over the past 30 days. Maxim Integrated has a market cap of $8.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.85 and a short float of 1.9% with 1.31 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Thursday.

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 Maxim Integrated Products as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels 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:
  • Although MXIM's debt-to-equity ratio of 0.21 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.97, which clearly demonstrates the ability to cover short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MAXIM INTEGRATED PRODUCTS's return on equity exceeds that of both the industry average and the S&P 500.
  • MAXIM INTEGRATED PRODUCTS's earnings per share declined by 16.3% 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, MAXIM INTEGRATED PRODUCTS increased its bottom line by earning $1.52 versus $1.17 in the prior year. This year, the market expects an improvement in earnings ($1.70 versus $1.52).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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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