Trade-Ideas: JDS Uniphase Corp (CA (JDSU) Is Today's Pre-Market Mover With Heavy Volume 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 JDS Uniphase Corp (CA ( JDSU) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified JDS Uniphase Corp (CA as such a stock due to the following factors:

  • JDSU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.4 million.
  • JDSU traded 1.4 million shares today in the pre-market hours as of 8:43 AM, representing 27.2% of its average daily volume.

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More details on JDSU:

JDS Uniphase Corporation provides network and service enablement solutions and optical products worldwide. Currently there are 5 analysts that rate JDS Uniphase Corp (CA a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for JDS Uniphase Corp (CA has been 4.2 million shares per day over the past 30 days. JDS Uniphase Corp (CA has a market cap of $2.7 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 2.04 and a short float of 2.7% with 1.74 days to cover. Shares are down 9.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates JDS Uniphase Corp (CA as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • JDSU's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 6.5%. 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.
  • The gross profit margin for JDS UNIPHASE CORP is rather high; currently it is at 53.30%. 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 -5.66% is in-line with the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.84 is very high and demonstrates very strong liquidity.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 127.5% when compared to the same quarter one year ago, falling from $92.50 million to -$25.40 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Communications Equipment industry and the overall market, JDS UNIPHASE CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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