Trade-Ideas LLC identified NXP Semiconductors ( NXPI) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified NXP Semiconductors as such a stock due to the following factors:

  • NXPI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $466.5 million.
  • NXPI has traded 4.1 million shares today.
  • NXPI traded in a range 209.3% of the normal price range with a price range of $5.25.
  • NXPI traded below its daily resistance level (quality: 1 day, meaning that the stock is crossing a resistance level set by the last 1 calendar day. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on NXPI:

NXP Semiconductors N.V., a semiconductor company, provides high performance mixed signal and standard product solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide. NXPI has a PE ratio of 15. Currently there are 13 analysts that rate NXP Semiconductors a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for NXP Semiconductors has been 3.9 million shares per day over the past 30 days. NXP Semiconductors has a market cap of $29.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.87 and a short float of 2.4% with 1.33 days to cover. Shares are up 5.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates NXP Semiconductors as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • NXPI's very impressive revenue growth greatly exceeded the industry average of 4.0%. Since the same quarter one year prior, revenues leaped by 51.6%. 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.
  • Net operating cash flow has increased to $414.00 million or 12.50% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -35.35%.
  • NXPI's debt-to-equity ratio of 0.80 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.94 is weak.
  • NXP SEMICONDUCTORS NV has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NXP SEMICONDUCTORS NV increased its bottom line by earning $5.82 versus $2.17 in the prior year. For the next year, the market is expecting a contraction of 2.1% in earnings ($5.70 versus $5.82).
  • The share price of NXP SEMICONDUCTORS NV has not done very well: it is down 12.58% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.

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