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

  • ADT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $171.6 million.
  • ADT traded 77,914 shares today in the pre-market hours as of 7:23 AM.
  • ADT is up 51.3% today from yesterday's close.

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More details on ADT:

The ADT Corporation provides monitored security, interactive home and business automation, and related monitoring services in the United States and Canada. The stock currently has a dividend yield of 3.2%. ADT has a PE ratio of 16. Currently there are 4 analysts that rate ADT a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for ADT has been 2.2 million shares per day over the past 30 days. ADT has a market cap of $4.5 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.39 and a short float of 24.7% with 8.03 days to cover. Shares are down 20% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates ADT as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • ADT's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 1.5%. 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 gross profit margin for ADT CORP is currently very high, coming in at 87.56%. 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 7.11% trails the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Commercial Services & Supplies industry average, but is greater than that of the S&P 500. The net income has decreased by 11.1% when compared to the same quarter one year ago, dropping from $72.00 million to $64.00 million.
  • Currently the debt-to-equity ratio of 1.86 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.25, which clearly demonstrates the inability to cover short-term cash needs.

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