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

  • CY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $135.6 million.
  • CY is up 2.3% today from today's close.

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More details on CY:

Cypress Semiconductor Corporation provides mixed-signal programmable solutions, specialized semiconductor memories, and integrated semiconductor solutions. The stock currently has a dividend yield of 3.4%. CY has a PE ratio of 1296.0. Currently there are 5 analysts that rate Cypress Semiconductor a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Cypress Semiconductor has been 3.7 million shares per day over the past 30 days. Cypress Semiconductor has a market cap of $2.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.49 and a short float of 7.2% with 1.09 days to cover. Shares are up 28.7% 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 Cypress Semiconductor as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and growth in earnings per share. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • Compared to its price level of one year ago, CY is up 32.06% to its most recent closing price of 12.48. Looking ahead, our view is that this company's fundamentals should not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • 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 245.4% when compared to the same quarter one year prior, rising from -$8.83 million to $12.84 million.
  • CYPRESS SEMICONDUCTOR CORP reported significant earnings per share improvement 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, CYPRESS SEMICONDUCTOR CORP reported poor results of -$0.33 versus -$0.16 in the prior year. This year, the market expects an improvement in earnings ($0.53 versus -$0.33).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, CYPRESS SEMICONDUCTOR CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio of 1.16 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, CY maintains a poor quick ratio of 0.74, which illustrates the inability to avoid short-term cash problems.

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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