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

  • EMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $496.3 million.
  • EMC traded 65,106 shares today in the pre-market hours as of 8:00 AM.
  • EMC is down 3% today from yesterday's close.

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More details on EMC:

EMC Corporation develops, delivers, and supports information infrastructure and virtual infrastructure technologies, solutions, and services. The stock currently has a dividend yield of 1.7%. EMC has a PE ratio of 20.2. Currently there are 19 analysts that rate EMC a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for EMC has been 16.4 million shares per day over the past 30 days. EMC has a market cap of $52.6 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.48 and a short float of 1.5% with 1.53 days to cover. Shares are down 9.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates EMC as a buy. 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, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • EMC's revenue growth trails the industry average of 32.9%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although EMC's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for EMC CORP/MA is currently very high, coming in at 70.92%. 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 16.25% trails the industry average.
  • Net operating cash flow has slightly increased to $2,231.00 million or 1.87% when compared to the same quarter last year. Despite an increase in cash flow of 1.87%, EMC CORP/MA is still growing at a significantly lower rate than the industry average of 53.02%.
  • EMC CORP/MA has improved earnings per share by 16.7% 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, EMC CORP/MA reported lower earnings of $1.31 versus $1.33 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $1.31).

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