Strong And Under The Radar: Power Integrations (POWI)

Trade-Ideas LLC identified Power Integrations ( POWI) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Power Integrations as such a stock due to the following factors:

  • POWI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.5 million.
  • POWI has traded 15.7462999999999997413624441833235323429107666015625 options contracts today.
  • POWI is making at least a new 3-day high.
  • POWI has a PE ratio of 4.
  • POWI is mentioned 1.42 times per day on StockTwits.
  • POWI has not yet been mentioned on StockTwits today.
  • POWI is currently in the upper 20% of its 1-year range.
  • POWI is in the upper 35% of its 20-day range.
  • POWI is in the upper 45% of its 5-day range.
  • POWI is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on POWI:

Power Integrations, Inc. designs, develops, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion. The stock currently has a dividend yield of 0.9%. POWI has a PE ratio of 4. Currently there are 3 analysts that rate Power Integrations a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Power Integrations has been 158,200 shares per day over the past 30 days. Power Integrations has a market cap of $1.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.40 and a short float of 3.2% with 5.45 days to cover. Shares are up 16% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Power Integrations as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 39.4% when compared to the same quarter one year prior, rising from $6.34 million to $8.84 million.
  • POWI's revenue growth trails the industry average of 14.8%. Since the same quarter one year prior, revenues slightly increased by 3.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • POWI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.90, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 42.85% and other important driving factors, this stock has surged by 38.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, POWI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has increased to $20.29 million or 14.82% when compared to the same quarter last year. In addition, POWER INTEGRATIONS INC has also vastly surpassed the industry average cash flow growth rate of -59.36%.

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