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 KLA-Tencor ( KLAC) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified KLA-Tencor as such a stock due to the following factors:
- KLAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $132.7 million.
- KLAC is up 2% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in KLAC with the Ticky from Trade-Ideas. See the FREE profile for KLAC NOW at Trade-Ideas More details on KLAC: KLA-Tencor Corporation engages in design, manufacture, and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries worldwide. The stock currently has a dividend yield of 2.5%. KLAC has a PE ratio of 20.9. Currently there are 6 analysts that rate KLA-Tencor a buy, 1 analyst rates it a sell, and 6 rate it a hold. The average volume for KLA-Tencor has been 1.4 million shares per day over the past 30 days. KLA-Tencor has a market cap of $12.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.33 and a short float of 4.2% with 3.73 days to cover. Shares are up 13.6% 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 KLA-Tencor 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 14.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- KLAC's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.04, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 26.44% which was in line with the performance of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KLAC 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 KLA-TENCOR CORP is rather high; currently it is at 61.25%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.48% is above that of the industry average.
- You can view the full KLA-Tencor 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.