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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 the tech sector for stocks with positive trends in inventory: 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 are selling well? Use this list as a starting point for your own analysis.

List sorted by difference between growth in revenue and inventory.

1. Silicon Graphics International Corp. (NASDAQ:SGI): Focuses on helping customers solve their technology challenges by delivering clustered and high-performance computing and storage solutions, and software and services. Market cap of $358.12M. MRQ revenue has increased 58.47% ($178.9M vs. $112.89M y/y) while MRQ inventory has increased 5.10% ($110.73M vs. $105.36M y/y). Inventory/current assets has decreased from 29.03% to 27.69%, comparing 13 weeks ending 2011-09-30 to 13 weeks ending 2010-09-24. The stock is a short squeeze candidate, with a short float at 26.81% (equivalent to 13.71 days of average volume). It's been a rough couple of days for the stock, losing 18.36% over the last week.

2. Silicon Motion Technology Corp. (NASDAQ:SIMO): Operates as a fabless semiconductor company. Market cap of $607.16M. MRQ revenue has increased 68.56% ($1,841.51M vs. $1,092.48M y/y) while MRQ inventory has increased 26.97% ($890.58M vs. $701.42M y/y). Inventory/current assets has decreased from 19.52% to 18.93%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. This is a risky stock that is significantly more volatile than the overall market (beta = 2.08). The stock has gained 391.98% over the last year.

3. Microsemi Corp. (NASDAQ:MSCC): Engages in the design, manufacture, and marketing of analog and mixed-signal integrated circuits (IC) and semiconductors primarily in the United States, as well as in Europe and Asia. Market cap of $1.41B. MRQ revenue has increased 50.32% ($227.29M vs. $151.2M y/y) while MRQ inventory has increased 11.64% ($140.83M vs. $126.15M y/y). Inventory/current assets has decreased from 29.19% to 24.37%, comparing 13 weeks ending 2011-10-02 to 13 weeks ending 2010-10-03. It's been a rough couple of days for the stock, losing 7.52% over the last week.

4. Zygo Corporation (NASDAQ:ZIGO): Designs, develops, and manufactures ultra-high precision measurement solutions to enhance its customers' manufacturing yields; and optical sub-systems and components for original equipment manufacturers and end-user applications in the United States and internationally. Market cap of $318.80M. MRQ revenue has increased 41.36% ($43.99M vs. $31.12M y/y) while MRQ inventory has increased 6.15% ($26.6M vs. $25.06M y/y). Inventory/current assets has decreased from 25.11% to 21.17%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 38.22% over the last year.

5. Systemax Inc. (NYSE:SYX): Operates as a direct marketer of brand name and private label products. Market cap of $568.78M. MRQ revenue has increased 4.46% ($901.18M vs. $862.71M y/y) while MRQ inventory has decreased 20.77% ($340.2M vs. $429.37M y/y). Inventory/current assets has decreased from 58.87% to 45.38%, comparing 13 weeks ending 2011-09-30 to 13 weeks ending 2010-09-30. The stock is a short squeeze candidate, with a short float at 6.82% (equivalent to 21.41 days of average volume). The stock has gained 25.64% over the last year.

6. LSI Corporation (NASDAQ:LSI): Designs, develops, and markets storage and networking semiconductors and storage systems worldwide. Market cap of $3.05B. MRQ revenue has increased 20.76% ($546.91M vs. $452.88M y/y) while MRQ inventory has decreased 4.40% ($210.43M vs. $220.12M y/y). Inventory/current assets has decreased from 17.78% to 14.72%, comparing 3 months ending 2011-10-02 to 3 months ending 2010-10-03. It's been a rough couple of days for the stock, losing 5.08% over the last week.

7. ASML Holding NV (NASDAQ:ASML): Engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. Market cap of $16.93B. 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. Might be undervalued at current levels, with a PEG ratio at 0.8, and P/FCF ratio at 7.08. The stock has gained 5.65% over the last year.

8. Motorola Mobility Holdings, Inc. (NYSE:MMI): Provides technologies, products, and services for mobile and wire line digital communication, information, and entertainment applications. Market cap of $11.62B. MRQ revenue has increased 10.62% ($3,259M vs. $2,946M y/y) while MRQ inventory has decreased 12.65% ($746M vs. $854M y/y). Inventory/current assets has decreased from 26.48% to 11.75%, comparing 3 months ending 2011-10-01 to 3 months ending 2010-10-02.

9. CIENA Corp. (NYSE:CIEN): Provides communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic. Market cap of $1.03B. MRQ revenue has increased 9.06% ($455.45M vs. $417.61M y/y) while MRQ inventory has decreased 12.06% ($230.08M vs. $261.62M y/y). Inventory/current assets has decreased from 18.15% to 17.26%, comparing 3 months ending 2011-10-31 to 3 months ending 2010-10-31. This is a risky stock that is significantly more volatile than the overall market (beta = 2.14). It's been a rough couple of days for the stock, losing 11.39% over the last week.

10. Polycom, Inc. (NASDAQ:PLCM): Provides communications solutions to enterprise, government, education, and healthcare customers to enable voice, video, and content communications. Market cap of $2.85B. MRQ revenue has increased 23.03% ($379.02M vs. $308.07M y/y) while MRQ inventory has increased 2.87% ($110.83M vs. $107.74M y/y). Inventory/current assets has decreased from 13.86% to 12.42%, comparing 13 weeks ending 2011-09-30 to 13 weeks ending 2010-09-30. The stock has performed poorly over the last month, losing 12.69%.

11. Harmonic Inc. (NASDAQ:HLIT): Designs, manufactures, and sells video products and system solutions that enable service providers to deliver broadcast and on-demand services. Market cap of $554.58M. MRQ revenue has increased 32.53% ($138.87M vs. $104.78M y/y) while MRQ inventory has increased 13.96% ($65.16M vs. $57.18M y/y). Inventory/current assets has decreased from 17.62% to 16.95%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-10-01. The stock has performed poorly over the last month, losing 15.25%.

12. NetLogic Microsystems Inc. (NASDAQ:NETL): Engages in the design, development, and sale of processors and integrated circuits. Market cap of $3.44B. 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 52.68% over the last year.

13. Advanced Micro Devices, Inc. (NYSE:AMD): Operates as a semiconductor company in the United States, Japan, China, and Europe. Market cap of $3.51B. MRQ revenue has increased 4.45% ($1,690M vs. $1,618M y/y) while MRQ inventory has decreased 13.18% ($540M vs. $622M y/y). Inventory/current assets has decreased from 19.36% to 15.83%, comparing 13 weeks ending 2011-10-01 to 13 weeks ending 2010-09-25. This is a risky stock that is significantly more volatile than the overall market (beta = 2.16). It's been a rough couple of days for the stock, losing 7.86% over the last week.

14. Broadcom Corp. (NASDAQ:BRCM): Designs and develops semiconductors for wired and wireless communications. Market cap of $15.18B. MRQ revenue has increased 8.36% ($1,957M vs. $1,806M y/y) while MRQ inventory has decreased 8.20% ($491M vs. $534.86M y/y). Inventory/current assets has decreased from 13.95% to 10.93%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock is currently stuck in a downtrend, trading 5.6% below its SMA20, 15.15% below its SMA50, and 18.05% below its SMA200. It's been a rough couple of days for the stock, losing 5.41% over the last week.

15. RDA Microelectronics, Inc. (NASDAQ:RDA): Designs, develops, and markets radio-frequency and mixed-signal semiconductors for cellular, broadcast, and connectivity applications. Market cap of $449.41M. MRQ revenue has increased 45.99% ($83.93M vs. $57.49M y/y) while MRQ inventory has increased 31.13% ($37.28M vs. $28.43M y/y). Inventory/current assets has decreased from 34.52% to 15.97%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has lost 28.7% over the last year.

16. MEMC Electronic Materials Inc. (WFR): Engages in the development, manufacture, and sale of silicon wafers for the semiconductor industry worldwide. Market cap of $845.82M. MRQ revenue has increased 2.60% ($516.2M vs. $503.1M y/y) while MRQ inventory has decreased 11.96% ($375.4M vs. $426.4M y/y). Inventory/current assets has decreased from 27.49% to 17.13%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. It's been a rough couple of days for the stock, losing 12.62% over the last week.

17. Lexmark International Inc. (NYSE:LXK): Develops, manufactures, and supplies printing and imaging solutions for offices. Market cap of $2.45B. MRQ revenue has increased 1.49% ($1,034.9M vs. $1,019.7M y/y) while MRQ inventory has decreased 12.32% ($343.6M vs. $391.9M y/y). Inventory/current assets has decreased from 17.49% to 14.99%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.07%, current ratio at 2.01, and quick ratio at 1.71. The stock is a short squeeze candidate, with a short float at 11.12% (equivalent to 5.31 days of average volume). The stock has lost 7.26% over the last year.

18. Yingli Green Energy Holding Co. Ltd. (NYSE:YGE): Engages in the design, development, manufacture, marketing, sale, and installation of photovoltaic (PV) products in the People's Republic of China and internationally. Market cap of $571.07M. MRQ revenue has increased 29.67% ($4,258.58M vs. $3,284.24M y/y) while MRQ inventory has increased 17.68% ($2,641.49M vs. $2,244.66M y/y). Inventory/current assets has decreased from 22.11% to 19.08%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. This is a risky stock that is significantly more volatile than the overall market (beta = 3.14). The stock is a short squeeze candidate, with a short float at 19.96% (equivalent to 5.22 days of average volume). It's been a rough couple of days for the stock, losing 19.6% over the last week.

19. NCR Corp. (NYSE:NCR): Provides technologies and services that enable businesses to connect, interact, and transact with their customers in the financial industry worldwide. Market cap of $2.57B. MRQ revenue has increased 16.24% ($1,403M vs. $1,207M y/y) while MRQ inventory has increased 4.29% ($850M vs. $815M y/y). Inventory/current assets has decreased from 32.78% to 31.67%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has performed poorly over the last month, losing 13.89%.

20. Electronics for Imaging, Inc. (NASDAQ:EFII): Provides color digital print controllers, format printers and inks, and print management solutions worldwide. Market cap of $641.94M. MRQ revenue has increased 14.13% ($147.28M vs. $129.05M y/y) while MRQ inventory has increased 4.58% ($47.27M vs. $45.2M y/y). Inventory/current assets has decreased from 12.56% to 12.42%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has lost 2.99% over the last year.

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

Source: 20 Tech Stocks With Positive Inventory Trends