Heavy Trading On ServiceMaster Global Holdings (SERV) Before Market Open
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified ServiceMaster Global Holdings as such a stock due to the following factors:
- SERV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.9 million.
- SERV traded 636,803 shares today in the pre-market hours as of 9:10 AM, representing 63.3% of its average daily volume.
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More details on SERV:
ServiceMaster Global Holdings, Inc. provides residential and commercial services in the United States. It operates in three segments: Terminix, American Home Shield, and the Franchise Services Group. SERV has a PE ratio of 28. Currently there are 5 analysts that rate ServiceMaster Global Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for ServiceMaster Global Holdings has been 722,000 shares per day over the past 30 days. ServiceMaster Global has a market cap of $4.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.58 and a short float of 1% with 0.85 days to cover. Shares are up 27.9% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates ServiceMaster Global Holdings as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- Compared to other companies in the Diversified Consumer Services industry and the overall market, SERVICEMASTER GLOBAL HLDGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
- SERVICEMASTER GLOBAL HLDGS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.75 versus $0.33).
- Powered by its strong earnings growth of 1950.00% and other important driving factors, this stock has surged by 40.12% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- 49.50% is the gross profit margin for SERVICEMASTER GLOBAL HLDGS which we consider to be strong. Regardless of SERV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SERV's net profit margin of 7.09% compares favorably to the industry average.
- The debt-to-equity ratio is very high at 5.27 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, SERV maintains a poor quick ratio of 0.86, which illustrates the inability to avoid short-term cash problems.
- You can view the full ServiceMaster Global Holdings Ratings Report.
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