Perilous Reversal Watch: Triquint Semiconductor (TQNT)

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

  • TQNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.1 million.
  • TQNT has traded 120,817 shares today.
  • TQNT is down 3.4% today.
  • TQNT was up 7.5% yesterday.

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

More details on TQNT:

TriQuint Semiconductor, Inc. provides a portfolio of radio frequency (RF) solutions for mobile device, networks infrastructure, and defense and aerospace markets worldwide. Currently there are 3 analysts that rate Triquint Semiconductor a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Triquint Semiconductor has been 5.1 million shares per day over the past 30 days. Triquint Semiconductor has a market cap of $2.2 billion and is part of the technology sector and electronics industry. Shares are up 59.2% year-to-date as of the close of trading on Wednesday.

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 Triquint Semiconductor 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity 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 1.5%. Since the same quarter one year prior, revenues rose by 14.6%. 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.
  • TQNT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, TQNT has a quick ratio of 2.37, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 45.39% is the gross profit margin for TRIQUINT SEMICONDUCTOR INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.26% is in-line with the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 132.6% when compared to the same quarter one year ago, falling from -$3.76 million to -$8.74 million.
  • 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. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TRIQUINT SEMICONDUCTOR INC's return on equity significantly trails that of both the industry average and the S&P 500.

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

General Electric Booted From Dow, Replaced by Walgreens

General Electric Booted From Dow, Replaced by Walgreens

Dow Plunges on Trade War Worries but Walmart and Verizon Finish Positively

Dow Plunges on Trade War Worries but Walmart and Verizon Finish Positively

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

FANG Stocks Get Swept Up in Broader Market Selloff

FANG Stocks Get Swept Up in Broader Market Selloff

Snap Shares Plunge After Cowen Cuts Price Target

Snap Shares Plunge After Cowen Cuts Price Target