Today's Pre-Market Mover With Heavy Volume: Bally Technologies (BYI)

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

  • BYI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.2 million.
  • BYI traded 371,096 shares today in the pre-market hours as of 8:22 AM, representing 66.8% of its average daily volume.

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More details on BYI:

Bally Technologies, Inc., a gaming company, designs, manufactures, operates, and distributes advanced technology-based gaming devices, systems, server-based solutions, custom mobile applications, and interactive applications in the United States and internationally. BYI has a PE ratio of 19.4. Currently there are 8 analysts that rate Bally Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Bally Technologies has been 631,600 shares per day over the past 30 days. Bally has a market cap of $2.4 billion and is part of the services sector and leisure industry. The stock has a beta of 1.96 and a short float of 11.4% with 7.66 days to cover. Shares are down 22.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bally Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 30.6%. 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.
  • BALLY TECHNOLOGIES INC's earnings per share declined by 24.7% 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, BALLY TECHNOLOGIES INC increased its bottom line by earning $3.45 versus $2.27 in the prior year. This year, the market expects an improvement in earnings ($4.35 versus $3.45).
  • The gross profit margin for BALLY TECHNOLOGIES INC is rather high; currently it is at 69.90%. Regardless of BYI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.10% trails the industry average.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, BALLY TECHNOLOGIES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, BYI has underperformed the S&P 500 Index, declining 12.25% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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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