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 Brocade Communications Systems ( BRCD) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Brocade Communications Systems as such a stock due to the following factors:
- BRCD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $62.2 million.
- BRCD is up 3.2% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in BRCD with the Ticky from Trade-Ideas. See the FREE profile for BRCD NOW at Trade-Ideas More details on BRCD: Brocade Communications Systems, Inc. provides Internet protocol based networking solutions and storage area networking (SAN) solutions to businesses and organizations worldwide. BRCD has a PE ratio of 21.6. Currently there are 4 analysts that rate Brocade Communications Systems a buy, 1 analyst rates it a sell, and 11 rate it a hold. The average volume for Brocade Communications Systems has been 4.9 million shares per day over the past 30 days. Brocade Communications Systems has a market cap of $4.3 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.02 and a short float of 2% with 1.23 days to cover. Shares are up 8.2% 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 Brocade Communications Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- Powered by its strong earnings growth of 27.27% and other important driving factors, this stock has surged by 72.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BRCD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BROCADE COMMUNICATIONS SYS has improved earnings per share by 27.3% 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, BROCADE COMMUNICATIONS SYS increased its bottom line by earning $0.45 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.45).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Communications Equipment industry average. The net income increased by 18.9% when compared to the same quarter one year prior, going from $54.00 million to $64.23 million.
- Although BRCD's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. To add to this, BRCD has a quick ratio of 2.21, which demonstrates the ability of the company to cover short-term liquidity needs.
- You can view the full Brocade Communications Systems 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.