Methanex Corporation (MEOH) Shows Signs Of Being Water-Logged And Getting Wetter
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 Methanex Corporation (MEOH) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Methanex Corporation as such a stock due to the following factors:
- MEOH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.2 million.
- MEOH has traded 486,257 shares today.
- MEOH traded in a range 200.9% of the normal price range with a price range of $2.66.
- MEOH traded below its daily resistance level (quality: 2 days, meaning that the stock is crossing a resistance level set by the last 2 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.EXCLUSIVE OFFER: Get the inside scoop on opportunities in MEOH with the Ticky from Trade-Ideas. See the FREE profile for MEOH NOW at Trade-IdeasMore details on MEOH: Methanex Corporation produces, supplies, and sells methanol to petrochemical producers and distributors. The company also purchases and re-sells methanol produced by others. The stock currently has a dividend yield of 1.1%. MEOH has a PE ratio of 21.0. Currently there are 5 analysts that rate Methanex Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.The average volume for Methanex Corporation has been 786,600 shares per day over the past 30 days. Methanex has a market cap of $6.9 billion and is part of the basic materials sector and chemicals industry. Shares are up 20.8% year-to-date as of the close of trading on Thursday.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 Methanex Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 32.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 188.59% and other important driving factors, this stock has surged by 89.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MEOH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- METHANEX 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 two years. During the past fiscal year, METHANEX CORP turned its bottom line around by earning $3.41 versus -$0.79 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 191.4% when compared to the same quarter one year prior, rising from -$139.85 million to $127.80 million.
- Net operating cash flow has significantly increased by 64.39% to $161.76 million when compared to the same quarter last year. In addition, METHANEX CORP has also vastly surpassed the industry average cash flow growth rate of 7.25%.
- You can view the full Methanex 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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