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

  • PLT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.9 million.
  • PLT has traded 480,588 shares today.
  • PLT is down 3.1% today.
  • PLT was up 10.3% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PLT with the Ticky from Trade-Ideas. See the FREE profile for PLT NOW at Trade-Ideas More details on PLT: Plantronics, Inc. designs, manufactures, and markets lightweight communications headsets, telephone headset systems, other communication endpoints, and accessories for the business and consumer markets under the Plantronics brand worldwide. The stock currently has a dividend yield of 1.5%. PLT has a PE ratio of 18. Currently there are 4 analysts that rate Plantronics a buy, 1 analyst rates it a sell, and none rate it a hold. The average volume for Plantronics has been 223,100 shares per day over the past 30 days. Plantronics has a market cap of $1.3 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.24 and a short float of 4.4% with 3.63 days to cover. Shares are down 8.8% year-to-date as of the close of trading on Wednesday. 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 Plantronics as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and expanding profit margins. 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:
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, PLANTRONICS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $37.58 million or 32.56% when compared to the same quarter last year. Despite an increase in cash flow, PLANTRONICS INC's average is still marginally south of the industry average growth rate of 38.81%.
  • Currently the debt-to-equity ratio of 1.61 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 5.07, which shows the ability to cover short-term cash needs.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 46.4% when compared to the same quarter one year ago, falling from $30.38 million to $16.29 million.

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