Perilous Reversal Watch: US Silica Holdings (SLCA)
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified US Silica Holdings as such a stock due to the following factors:
- SLCA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $58.3 million.
- SLCA has traded 234,692 shares today.
- SLCA is down 3% today.
- SLCA was up 10% yesterday.
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More details on SLCA:
U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. It operates through two segments, Oil & Gas Proppants, and Industrial & Specialty Products. The stock currently has a dividend yield of 2.6%. SLCA has a PE ratio of 17. Currently there are 7 analysts that rate US Silica Holdings a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for US Silica Holdings has been 2.2 million shares per day over the past 30 days. US Silica has a market cap of $1.0 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.90 and a short float of 31.9% with 5.24 days to cover. Shares are down 19.3% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates US Silica Holdings as a
. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including deteriorating net income, poor profit margins and generally higher debt management risk.
Highlights from the ratings report include:
- SLCA, with its decline in revenue, slightly underperformed the industry average of 31.4%. Since the same quarter one year prior, revenues fell by 35.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, U S SILICA HOLDINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
- U S SILICA HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, U S SILICA HOLDINGS INC increased its bottom line by earning $2.24 versus $1.41 in the prior year. For the next year, the market is expecting a contraction of 84.8% in earnings ($0.34 versus $2.24).
- The gross profit margin for U S SILICA HOLDINGS INC is rather low; currently it is at 21.11%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 1.55% trails that of the industry average.
- 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 Energy Equipment & Services industry. The net income has significantly decreased by 94.2% when compared to the same quarter one year ago, falling from $41.28 million to $2.41 million.
- You can view the full US Silica Holdings Ratings Report.
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