RF Micro Devices (RFMD) Rising Before The Market Opens

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 RF Micro Devices ( RFMD) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified RF Micro Devices as such a stock due to the following factors:

  • RFMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $232.2 million.
  • RFMD traded 15,000 shares today in the pre-market hours as of 8:00 AM.
  • RFMD is up 3.6% today from yesterday's close.

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More details on RFMD:

RF Micro Devices, Inc. is engaged in the design, development, manufacture, and marketing of radio frequency (RF) solutions for original equipment manufacturers and original design manufacturers in wireless and wired communications applications in the United States and internationally. RFMD has a PE ratio of 294.2. Currently there are 8 analysts that rate RF Micro Devices a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for RF Micro Devices has been 10.2 million shares per day over the past 30 days. RF Micro Devices has a market cap of $3.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.07 and a short float of 12.8% with 1.92 days to cover. Shares are up 116.3% year-to-date as of the close of trading on Thursday.

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 RF Micro Devices as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • RF MICRO DEVICES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RF MICRO DEVICES INC turned its bottom line around by earning $0.05 versus -$0.20 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus $0.05).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 2375.8% when compared to the same quarter one year prior, rising from $1.56 million to $38.65 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 44.98% is the gross profit margin for RF MICRO DEVICES INC which we consider to be strong. 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 12.21% trails the industry average.
  • Powered by its strong earnings growth of 1200.00% and other important driving factors, this stock has surged by 115.23% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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