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 TIBCO Software ( TIBX) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified TIBCO Software as such a stock due to the following factors:

  • TIBX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $90.6 million.
  • TIBX is up 3.7% today from today's close.

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More details on TIBX:

TIBCO Software Inc. provides infrastructure and business intelligence software worldwide. The company offers products in the areas of integration and core infrastructure; business optimization; and process automation and collaboration. TIBX has a PE ratio of 39.1. Currently there are 5 analysts that rate TIBCO Software a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for TIBCO Software has been 2.8 million shares per day over the past 30 days. TIBCO Software has a market cap of $3.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.95 and a short float of 1.6% with 0.51 days to cover. Shares are down 9.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates TIBCO Software as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Software industry average, but is less than that of the S&P 500. The net income increased by 27.8% when compared to the same quarter one year prior, rising from $9.51 million to $12.15 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TIBCO SOFTWARE INC has improved earnings per share by 16.7% 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, TIBCO SOFTWARE INC reported lower earnings of $0.51 versus $0.72 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.51).
  • Net operating cash flow has decreased to $52.87 million or 16.37% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • 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. When compared to other companies in the Software industry and the overall market, TIBCO SOFTWARE INC's return on equity is below 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.

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