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 Vasco Data Security International ( VDSI) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Vasco Data Security International as such a stock due to the following factors:

  • VDSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.8 million.
  • VDSI has traded 89,994 shares today.
  • VDSI is down 4.5% today.
  • VDSI was up 6.7% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in VDSI with the Ticky from Trade-Ideas. See the FREE profile for VDSI NOW at Trade-Ideas

More details on VDSI:

VASCO Data Security International, Inc., together with its subsidiaries, designs, develops, markets, and supports hardware and software security systems that manage and secure access to information assets worldwide. VDSI has a PE ratio of 30.9. Currently there are 2 analysts that rate Vasco Data Security International a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vasco Data Security International has been 1.6 million shares per day over the past 30 days. Vasco Data Security International has a market cap of $1.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.79 and a short float of 43.5% with 7.64 days to cover. Shares are down 9.1% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Vasco Data Security International as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 44.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VDSI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.72, which clearly demonstrates the ability to cover short-term cash needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, VASCO DATA SEC INTL INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 211.11% and other important driving factors, this stock has surged by 213.23% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, VDSI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

null