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

  • AUO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.5 million.
  • AUO has traded 93.3284000000000020236257114447653293609619140625 options contracts today.
  • AUO is making at least a new 3-day high.
  • AUO has a PE ratio of 6.
  • AUO is mentioned 1.94 times per day on StockTwits.
  • AUO has not yet been mentioned on StockTwits today.
  • AUO is currently in the upper 20% of its 1-year range.
  • AUO is in the upper 35% of its 20-day range.
  • AUO is in the upper 45% of its 5-day range.
  • AUO 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AUO with the Ticky from Trade-Ideas. See the FREE profile for AUO NOW at Trade-Ideas

More details on AUO:

AU Optronics Corp. researches, develops, produces, and sells thin film transistor liquid crystal displays and other flat panel displays. The company operates through two segments, Display and Solar. The stock currently has a dividend yield of 1.6%. AUO has a PE ratio of 6. Currently there are 2 analysts that rate AU Optronics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for AU Optronics has been 716,700 shares per day over the past 30 days. AU Optronics has a market cap of $3.9 billion and is part of the technology sector and electronics industry. Shares are up 42.3% year-to-date as of the close of trading on Friday.

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 AU Optronics as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • AU OPTRONICS CORP 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, AU OPTRONICS CORP reported lower earnings of $0.23 versus $0.53 in the prior year. For the next year, the market is expecting a contraction of 117.4% in earnings (-$0.04 versus $0.23).
  • 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 111.9% when compared to the same quarter one year ago, falling from $147.49 million to -$17.54 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, AU OPTRONICS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AU OPTRONICS CORP is rather low; currently it is at 19.27%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.70% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $235.41 million or 55.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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.