Symantec (SYMC) Marked As A Dead Cat Bounce 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.

Trade-Ideas LLC identified Symantec ( SYMC) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Symantec as such a stock due to the following factors:

  • SYMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $108.2 million.
  • SYMC has traded 2.8 million shares today.
  • SYMC is up 6.9% today.
  • SYMC was down 5.5% yesterday.

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

More details on SYMC:

Symantec Corporation, together with its subsidiaries, provides security, backup, and availability solutions worldwide. Its products and services protect people and information in any environment from mobile devices and enterprise data centers to cloud-based systems. The stock currently has a dividend yield of 2.3%. SYMC has a PE ratio of 19. Currently there are 2 analysts that rate Symantec a buy, 2 analysts rate it a sell, and 15 rate it a hold.

The average volume for Symantec has been 4.3 million shares per day over the past 30 days. Symantec has a market cap of $17.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.24 and a short float of 1.8% with 1.65 days to cover. Shares are down 4.6% year-to-date as of the close of trading on Friday.

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 Symantec as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Net operating cash flow has slightly increased to $488.00 million or 8.68% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.51%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SYMANTEC CORP's earnings per share declined by 19.4% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, SYMANTEC CORP reported lower earnings of $1.26 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.26).
  • SYMC, with its decline in revenue, slightly underperformed the industry average of 1.5%. Since the same quarter one year prior, revenues slightly dropped by 8.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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.

More from Markets

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet