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 NVIDIA ( NVDA) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified NVIDIA as such a stock due to the following factors:
- NVDA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $119.7 million.
- NVDA is down 4.6% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in NVDA with the Ticky from Trade-Ideas. See the FREE profile for NVDA NOW at Trade-Ideas More details on NVDA: NVIDIA Corporation operates as a visual computing company. The company operates through two segments, GPU and Tegra Processors. The stock currently has a dividend yield of 1.9%. NVDA has a PE ratio of 21.5. Currently there are 9 analysts that rate NVIDIA a buy, 3 analysts rate it a sell, and 13 rate it a hold. The average volume for NVIDIA has been 9.0 million shares per day over the past 30 days. NVIDIA has a market cap of $10.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.33 and a short float of 11% with 7.36 days to cover. Shares are up 14.1% 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 NVIDIA as a buy. 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, reasonable valuation levels, solid stock price performance 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:
- NVDA's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 3.4%. 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 current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 5.39, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to its closing price of one year ago, NVDA's share price has jumped by 36.04%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NVDA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for NVIDIA CORP is rather high; currently it is at 58.36%. 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 12.83% trails the industry average.
- You can view the full NVIDIA 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.