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

  • EFOI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.6 million.
  • EFOI has traded 82,826 shares today.
  • EFOI is up 5.7% today.
  • EFOI was down 22% yesterday.

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More details on EFOI:

Energy Focus, Inc. designs, develops, manufactures, markets, and installs energy-efficient lighting systems and solutions in the United States and internationally. It operates in two segments, Products and Solutions. EFOI has a PE ratio of 47. Currently there are 3 analysts that rate Energy Focus a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Energy Focus has been 837,100 shares per day over the past 30 days. Energy Focus has a market cap of $146.6 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of -0.27 and a short float of 14.3% with 1.06 days to cover. Shares are up 305.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Energy Focus 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • EFOI's very impressive revenue growth greatly exceeded the industry average of 16.6%. Since the same quarter one year prior, revenues leaped by 148.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • EFOI's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, EFOI has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • ENERGY FOCUS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ENERGY FOCUS INC continued to lose money by earning -$1.03 versus -$1.50 in the prior year. This year, the market expects an improvement in earnings ($0.60 versus -$1.03).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 439.4% when compared to the same quarter one year prior, rising from -$0.62 million to $2.11 million.
  • 46.24% is the gross profit margin for ENERGY FOCUS INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 12.70% is above that of the industry average.

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