New Lifetime High Reached By HD Supply Holdings (HDS)
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified HD Supply Holdings as such a stock due to the following factors:
- HDS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.2 million.
- HDS has traded 10,902 shares today.
- HDS is trading at a new lifetime high.
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More details on HDS:
HD Supply Holdings, Inc. operates as an industrial distributor in North America. HDS has a PE ratio of 7. Currently there are 13 analysts that rate HD Supply Holdings a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for HD Supply Holdings has been 1.8 million shares per day over the past 30 days. HD Supply has a market cap of $7.2 billion and is part of the services sector and wholesale industry. The stock has a beta of 1.31 and a short float of 1.3% with 1.68 days to cover. Shares are up 22.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates HD Supply Holdings as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- Compared to other companies in the Trading Companies & Distributors industry and the overall market, HD SUPPLY HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- HDS's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 7.3%. 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.
- After a year of stock price fluctuations, the net result is that HDS's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- The debt-to-equity ratio is very high at 5.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, HDS's quick ratio is somewhat strong at 1.15, demonstrating the ability to handle short-term liquidity needs.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Trading Companies & Distributors industry. The net income has significantly decreased by 105.8% when compared to the same quarter one year ago, falling from $242.00 million to -$14.00 million.
- You can view the full HD Supply Holdings Ratings Report.
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