Today's Dead Cat Bounce Stock: Axiall (AXLL)
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 Axiall (AXLL) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Axiall as such a stock due to the following factors:
- AXLL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.3 million.
- AXLL has traded 548,430 shares today.
- AXLL is up 3% today.
- AXLL was down 8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AXLL with the Ticky from Trade-Ideas. See the FREE profile for AXLL NOW at Trade-IdeasMore details on AXLL: Axiall Corporation operates as an integrated chemicals and building products company in North America and Asia. The stock currently has a dividend yield of 1.5%. AXLL has a PE ratio of 34.5. Currently there are 3 analysts that rate Axiall a buy, no analysts rate it a sell, and 5 rate it a hold.The average volume for Axiall has been 892,500 shares per day over the past 30 days. Axiall has a market cap of $3.0 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 3.07 and a short float of 2.7% with 1.42 days to cover. Shares are down 15.7% year-to-date as of the close of trading on Friday.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 Axiall as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 13.1%. Since the same quarter one year prior, revenues rose by 44.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Chemicals industry average. The net income increased by 76.5% when compared to the same quarter one year prior, rising from $32.29 million to $57.00 million.
- Net operating cash flow has slightly increased to $169.70 million or 2.51% when compared to the same quarter last year. Despite an increase in cash flow, AXIALL CORP's average is still marginally south of the industry average growth rate of 6.75%.
- Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.32 is sturdy.
- You can view the full Axiall 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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV