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For a look into a company’s sales trends, one idea is to consider their growth in inventory over time. Comparing this to growth in revenue could show some interesting results.

We ran a screen on stocks from the tech sector rallying above their 20-day, 50-day, and 200-day moving averages. We screened these stocks for those with positive trends in inventory, with growth in quarterly revenue outpacing growth in quarterly inventory year-over-year. We also screened for companies with quarterly inventory decreasing as a percent of current assets.

To understand why these trends are positive, think of why the opposite trends would be negative. If revenue were growing slower than inventory, it may indicate that the company is having trouble selling its inventory – although this could just indicate inventory building or a change in sales policies.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

click to enlarge

Do you think these companies have strong sales trends? Use this list as a starting-off point for your own analysis.

List sorted by difference between revenue growth and inventory growth.

1. Majesco Entertainment Co. (COOL): Provides interactive entertainment products primarily in the United States and Europe. Market cap of $139.18M. The stock is currently trading at 9.97% above its 20-Day SMA, 24.73% above its 50-Day SMA, and 22.94% above its 200-Day SMA. MRQ revenue has increased 60.91% ($19.55M vs. $12.15M y/y) while MRQ inventory has increased 31.71% ($4.61M vs. $3.5M y/y). Inventory/current assets has decreased from 16.03% to 11.71%, comparing 3 months ending 2011-07-31 to 3 months ending 2010-07-31. The stock has had a couple of great days, gaining 5.31% over the last week.

2. ASML Holding NV (ASML): Engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. Market cap of $17.53B. The stock is currently trading at 3.46% above its 20-Day SMA, 10.64% above its 50-Day SMA, and 5.15% above its 200-Day SMA. MRQ revenue has increased 24.02% ($1,458.5M vs. $1,176M y/y) while MRQ inventory has increased 0.41% ($1,455.8M vs. $1,449.8M y/y). Inventory/current assets has decreased from 33.34% to 25.99%, comparing 3 months ending 2011-09-25 to 3 months ending 2010-09-26. The stock has had a good month, gaining 21.4%.

3. NetLogic Microsystems Inc. (NETL): Engages in the design, development, and sale of processors and integrated circuits. Market cap of $3.42B. The stock is currently trading at 0.94% above its 20-Day SMA, 13.71% above its 50-Day SMA, and 24.91% above its 200-Day SMA. MRQ revenue has increased 6.76% ($106.81M vs. $100.05M y/y) while MRQ inventory has decreased 11.56% ($38.33M vs. $43.34M y/y). Inventory/current assets has decreased from 13.47% to 11.29%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 64.71% over the last year.

4. CalAmp Corp. (CAMP): Develops and markets wireless communications solutions that deliver data, voice, and video for critical networked communications and other applications in the United States. Market cap of $106.19M. The stock is currently trading at 2.71% above its 20-Day SMA, 13.31% above its 50-Day SMA, and 12.23% above its 200-Day SMA. MRQ revenue has increased 14.62% ($33.8M vs. $29.49M y/y) while MRQ inventory has decreased 1.25% ($11.84M vs. $11.99M y/y). Inventory/current assets has decreased from 32.94% to 30.63%, comparing 13 weeks ending 2011-08-31 to 13 weeks ending 2010-08-31. The stock has had a good month, gaining 15.26%.

5. Systemax Inc. (SYX): Operates as a direct marketer of brand name and private label products. Market cap of $550.58M. The stock is currently trading at 1.75% above its 20-Day SMA, 5.72% above its 50-Day SMA, and 1.72% above its 200-Day SMA. MRQ revenue has increased 8.23% ($872.22M vs. $805.88M y/y) while MRQ inventory has decreased 5.79% ($358.47M vs. $380.49M y/y). Inventory/current assets has decreased from 56.22% to 48.12%, comparing 13 weeks ending 2011-06-30 to 13 weeks ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 7.06% (equivalent to 15.97 days of average volume). The stock has had a good month, gaining 18.95%.

6. Astro-Med Inc. (ALOT): Designs, develops, manufactures, distributes, and services various products that acquire, store, analyze, and present data in multiple formats. Market cap of $58.25M. The stock is currently trading at 7.07% above its 20-Day SMA, 7.04% above its 50-Day SMA, and 1.57% above its 200-Day SMA. MRQ revenue has increased 14.59% ($20.34M vs. $17.75M y/y) while MRQ inventory has increased 2.21% ($13.9M vs. $13.6M y/y). Inventory/current assets has decreased from 27.85% to 27.54%, comparing 3 months ending 2011-07-30 to 3 months ending 2010-07-31. The stock has had a couple of great days, gaining 11.14% over the last week.

7. IXYS Corp. (IXYS): Engages in the development, manufacture, and marketing of power semiconductors, advanced mixed signal integrated circuits (ICs), application specific integrated circuits (ASICs), and systems and radio frequency semiconductors. Market cap of $431.29M. The stock is currently trading at 5.17% above its 20-Day SMA, 9.59% above its 50-Day SMA, and 1.17% above its 200-Day SMA. MRQ revenue has increased 19.91% ($101.78M vs. $84.88M y/y) while MRQ inventory has increased 10.57% ($75.62M vs. $68.39M y/y). Inventory/current assets has decreased from 35.18% to 31.83%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 5.01% (equivalent to 8.59 days of average volume). The stock has had a couple of great days, gaining 6.88% over the last week.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 7 Rallying Tech Stocks With Encouraging Inventory Data