Strong And Under The Radar: Fairchild Semiconductor International (FCS)

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 Fairchild Semiconductor International ( FCS) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Fairchild Semiconductor International as such a stock due to the following factors:

  • FCS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.1 million.
  • FCS is making at least a new 3-day high.
  • FCS has a PE ratio of 232.3.
  • FCS is mentioned 0.81 times per day on StockTwits.
  • FCS has not yet been mentioned on StockTwits today.
  • FCS is currently in the upper 20% of its 1-year range.
  • FCS is in the upper 35% of its 20-day range.
  • FCS is in the upper 45% of its 5-day range.
  • FCS is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on FCS:

Fairchild Semiconductor International, Inc. designs, develops, manufactures, and sells power analog, power discrete, and non-power semiconductor solutions worldwide. FCS has a PE ratio of 232.3. Currently there is 1 analyst that rates Fairchild Semiconductor International a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Fairchild Semiconductor International has been 1.8 million shares per day over the past 30 days. Fairchild Semiconductor International has a market cap of $1.9 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.32 and a short float of 6.6% with 9.34 days to cover. Shares are up 26.6% year-to-date as of the close of trading on Wednesday.

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 Fairchild Semiconductor International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • FCS's revenue growth trails the industry average of 18.6%. Since the same quarter one year prior, revenues slightly increased by 4.5%. 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.
  • FCS's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, FCS has a quick ratio of 2.19, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 43.35% is the gross profit margin for FAIRCHILD SEMICONDUCTOR INTL 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 -0.26% is in-line with the industry average.
  • FAIRCHILD SEMICONDUCTOR INTL 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 reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, FAIRCHILD SEMICONDUCTOR INTL reported lower earnings of $0.04 versus $0.18 in the prior year. This year, the market expects an improvement in earnings ($0.67 versus $0.04).
  • 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 108.3% when compared to the same quarter one year ago, falling from $12.10 million to -$1.00 million.

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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