Today's Post-Market Laggard Is InvenSense (INVN)

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 InvenSense ( INVN) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified InvenSense as such a stock due to the following factors:

  • INVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.3 million.
  • INVN is down 5% today from today's close.

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

More details on INVN:

InvenSense, Inc. designs, develops, markets, and sells micro-electro-mechanical system (MEMS) gyroscopes for motion tracking devices in consumer electronics. INVN has a PE ratio of 31.6. Currently there are 5 analysts that rate InvenSense a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for InvenSense has been 2.2 million shares per day over the past 30 days. InvenSense has a market cap of $1.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 3.74 and a short float of 35.1% with 8.84 days to cover. Shares are down 8.1% year-to-date as of the close of trading on Tuesday.

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 InvenSense as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, premium valuation and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.7%. Since the same quarter one year prior, revenues rose by 28.3%. 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.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, INVENSENSE INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Compared to its closing price of one year ago, INVN's share price has jumped by 58.38%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry average. The net income has decreased by 0.4% when compared to the same quarter one year ago, dropping from $13.66 million to $13.61 million.

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

Stocks Rise, Nasdaq Jumps as Facebook Rallies

Stocks Rise, Nasdaq Jumps as Facebook Rallies

AMD Shares Explode After Solid Q1, Robust Outlook That Defies Chip Sector Gloom

AMD Shares Explode After Solid Q1, Robust Outlook That Defies Chip Sector Gloom

Facebook Stock Set for Biggest Gain in Two Years After Q1 Earnings Top Forecasts

Facebook Stock Set for Biggest Gain in Two Years After Q1 Earnings Top Forecasts

Earnings, Earnings and More Earnings - Your Midweek Update From Facebook to Ford

Earnings, Earnings and More Earnings - Your Midweek Update From Facebook to Ford

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk