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.

Trade-Ideas LLC identified SanDisk ( SNDK) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified SanDisk as such a stock due to the following factors:

  • SNDK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $241.9 million.
  • SNDK traded 26,520 shares today in the pre-market hours as of 7:26 AM.
  • SNDK is down 12.6% today from yesterday's close.

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More details on SNDK:

SanDisk Corporation designs, develops, manufactures, and markets data storage solutions in the United States and internationally. The stock currently has a dividend yield of 1.4%. SNDK has a PE ratio of 20.2. Currently there are 15 analysts that rate SanDisk a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for SanDisk has been 4.5 million shares per day over the past 30 days. SanDisk has a market cap of $18.2 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.99 and a short float of 6.9% with 4.79 days to cover. Shares are down 13.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SanDisk as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. 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 significantly trails the industry average of 31.7%. Since the same quarter one year prior, revenues slightly increased by 0.4%. 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 return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market on the basis of return on equity, SANDISK CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • 48.54% is the gross profit margin for SANDISK CORP which we consider to be strong. Regardless of SNDK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SNDK's net profit margin of 11.63% is significantly lower than the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.50 is sturdy.
  • SANDISK CORP's earnings per share declined by 40.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SANDISK CORP reported lower earnings of $4.23 versus $4.37 in the prior year. This year, the market expects an improvement in earnings ($5.28 versus $4.23).

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