Today's Strong And Under The Radar Stock Is Finisar (FNSR)

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

  • FNSR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.8 million.
  • FNSR has traded 1032.930000000000063664629124104976654052734375 options contracts today.
  • FNSR is making at least a new 3-day high.
  • FNSR has a PE ratio of 58.
  • FNSR is mentioned 1.19 times per day on StockTwits.
  • FNSR has not yet been mentioned on StockTwits today.
  • FNSR is currently in the upper 20% of its 1-year range.
  • FNSR is in the upper 35% of its 20-day range.
  • FNSR is in the upper 45% of its 5-day range.
  • FNSR 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 FNSR:

Finisar Corporation provides optical subsystems and components for data communication and telecommunication applications in the United States, Malaysia, China, and internationally. FNSR has a PE ratio of 58. Currently there are 5 analysts that rate Finisar a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Finisar has been 1.4 million shares per day over the past 30 days. Finisar has a market cap of $2.0 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.48 and a short float of 8.4% with 7.95 days to cover. Shares are up 29% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Finisar as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • FINISAR CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, FINISAR CORP increased its bottom line by earning $0.32 versus $0.12 in the prior year. This year, the market expects an improvement in earnings ($1.26 versus $0.32).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 78.4% when compared to the same quarter one year prior, rising from $7.33 million to $13.07 million.
  • FNSR's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.67, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $54.60 million or 39.63% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.30%.
  • 35.73% is the gross profit margin for FINISAR CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FNSR's net profit margin of 4.10% significantly trails the industry average.

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