Today Avago Technologies (AVGO) Hits New Lifetime High

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 Avago Technologies ( AVGO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Avago Technologies as such a stock due to the following factors:

  • AVGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $183.8 million.
  • AVGO has traded 521,636 shares today.
  • AVGO is trading at a new lifetime high.

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More details on AVGO:

Avago Technologies Limited is engaged in the design, development, and supply of analog semiconductor devices with a focus on III-V based products. The stock currently has a dividend yield of 1.5%. AVGO has a PE ratio of 65.2. Currently there are 13 analysts that rate Avago Technologies a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Avago Technologies has been 1.9 million shares per day over the past 30 days. Avago has a market cap of $21.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.03 and a short float of 2.7% with 1.20 days to cover. Shares are up 66.3% 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 Avago Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • AVGO's very impressive revenue growth greatly exceeded the industry average of 10.3%. Since the same quarter one year prior, revenues leaped by 99.8%. 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.
  • Net operating cash flow has significantly increased by 129.19% to $314.00 million when compared to the same quarter last year. In addition, AVAGO TECHNOLOGIES LTD has also vastly surpassed the industry average cash flow growth rate of 7.61%.
  • The gross profit margin for AVAGO TECHNOLOGIES LTD is rather high; currently it is at 61.38%. 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 -12.74% is in-line with the industry average.
  • Compared to its closing price of one year ago, AVGO's share price has jumped by 122.39%, exceeding the performance of the broader market during that same time frame. 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.
  • AVAGO TECHNOLOGIES LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, AVAGO TECHNOLOGIES LTD reported lower earnings of $2.19 versus $2.26 in the prior year. This year, the market expects an improvement in earnings ($4.66 versus $2.19).

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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