Trade-Ideas: AK Steel Holding Corporation (AKS) Is Today's "Perilous Reversal" Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified AK Steel Holding Corporation (AKS) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified AK Steel Holding Corporation as such a stock due to the following factors:
- AKS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.8 million.
- AKS has traded 472,811 shares today.
- AKS is down 7.2% today.
- AKS was up 18.7% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AKS with the Ticky from Trade-Ideas. See the FREE profile for AKS NOW at Trade-IdeasMore details on AKS: AK Steel Holding Corporation produces flat-rolled carbon, stainless and electrical steel, and tubular products in the United States and internationally. Currently there is 1 analyst that rates AK Steel Holding Corporation a buy, 2 analysts rate it a sell, and 10 rate it a hold.The average volume for AK Steel Holding Corporation has been 7.2 million shares per day over the past 30 days. AK Steel Holding has a market cap of $852.1 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.44 and a short float of 25.5% with 3.58 days to cover. Shares are down 23.8% year-to-date as of the close of trading on Monday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates AK Steel Holding Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and poor profit margins.Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to -$119.20 million or 53.21% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The gross profit margin for AK STEEL HOLDING CORP is currently extremely low, coming in at 10.34%. Regardless of AKS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AKS's net profit margin of -2.38% significantly underperformed when compared to the industry average.
- AKS, with its decline in revenue, underperformed when compared the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 9.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- AK STEEL HOLDING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AK STEEL HOLDING CORP reported poor results of -$9.10 versus -$1.41 in the prior year. This year, the market expects an improvement in earnings (-$0.57 versus -$9.10).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 47.9% when compared to the same quarter one year prior, rising from -$60.90 million to -$31.70 million.
- You can view the full AK Steel Holding Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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