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 Infoblox ( BLOX) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Infoblox as such a stock due to the following factors:

  • BLOX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.3 million.
  • BLOX traded 96,562 shares today in the pre-market hours as of 7:51 AM, representing 11.9% of its average daily volume.

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More details on BLOX:

Infoblox Inc. develops, markets, and sells automated network control solutions worldwide. Its appliance-based solution combines real-time IP address management with the automation of network control, and network change and configuration management processes in physical and virtual appliances. Currently there are 6 analysts that rate Infoblox a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Infoblox has been 1.2 million shares per day over the past 30 days. Infoblox has a market cap of $1.1 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.19 and a short float of 5% with 3.32 days to cover. Shares are down 39% 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 Infoblox as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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 Software industry. The net income has significantly decreased by 35.4% when compared to the same quarter one year ago, falling from -$3.25 million to -$4.39 million.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, BLOX has underperformed the S&P 500 Index, declining 10.26% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 Software industry and the overall market, INFOBLOX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INFOBLOX INC is currently very high, coming in at 77.92%. Regardless of BLOX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLOX's net profit margin of -7.21% significantly underperformed when compared to the industry average.
  • INFOBLOX INC's earnings per share declined by 14.3% 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, INFOBLOX INC continued to lose money by earning -$0.10 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.32 versus -$0.10).

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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