Trade-Ideas: OmniVision Technologies (OVTI) Is Today's

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 OmniVision Technologies ( OVTI) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified OmniVision Technologies as such a stock due to the following factors:

  • OVTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.5 million.
  • OVTI has traded 1.2 million shares today.
  • OVTI is down 3.1% today.
  • OVTI was up 15% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in OVTI with the Ticky from Trade-Ideas. See the FREE profile for OVTI NOW at Trade-Ideas

More details on OVTI:

OmniVision Technologies, Inc. designs, develops, manufactures, and markets semiconductor image-sensor devices worldwide. OVTI has a PE ratio of 14.5. Currently there are 3 analysts that rate OmniVision Technologies a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for OmniVision Technologies has been 1.2 million shares per day over the past 30 days. OmniVision has a market cap of $1.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.17 and a short float of 9.3% with 2.80 days to cover. Shares are up 43% 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 OmniVision Technologies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 52.94% and other important driving factors, this stock has surged by 37.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OVTI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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 68.9% when compared to the same quarter one year prior, rising from $8.92 million to $15.07 million.
  • OVTI's debt-to-equity ratio is very low at 0.04 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 3.03, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 610.83% to $62.40 million when compared to the same quarter last year. In addition, OMNIVISION TECHNOLOGIES INC has also vastly surpassed the industry average cash flow growth rate of -11.39%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Alphabet's Earnings Beat and 4 Other Business Stories You Must Know Tuesday

Alphabet's Earnings Beat and 4 Other Business Stories You Must Know Tuesday

Alphabet Shares Gain as Investors Shrug Off Q1 Google Spending Spree

Alphabet Shares Gain as Investors Shrug Off Q1 Google Spending Spree

SAP Shares Leap After Cloud Business Prompts Full-Year Profit Guidance Hike

SAP Shares Leap After Cloud Business Prompts Full-Year Profit Guidance Hike

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know