Trade-Ideas: Finisar (FNSR) Is Today's Post-Market Leader Stock

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

  • FNSR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $72.0 million.
  • FNSR is up 2% today from today's close.

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More details on FNSR:

Finisar Corporation provides optical subsystems and components for data communication and telecommunication applications in the United States, Malaysia, China, and internationally. FNSR has a PE ratio of 17.9. Currently there are 8 analysts that rate Finisar a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Finisar has been 2.2 million shares per day over the past 30 days. Finisar has a market cap of $1.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.00 and a short float of 19.3% with 3.89 days to cover. Shares are down 28.1% year-to-date as of the close of trading on Tuesday.

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 Finisar as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, 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 came in higher than the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 23.1%. 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.
  • Although FNSR's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.01, which clearly demonstrates the ability to cover short-term cash needs.
  • FINISAR CORP's earnings per share declined by 46.1% 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, FINISAR CORP turned its bottom line around by earning $1.09 versus -$0.07 in the prior year. This year, the market expects an improvement in earnings ($1.41 versus $1.09).
  • 36.78% is the gross profit margin for FINISAR CORP which we consider to be strong. Regardless of FNSR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FNSR's net profit margin of 4.34% is significantly lower than the industry average.

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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