Silver Wheaton (SLW) Strong In Pre-Market Trading

Trade-Ideas LLC identified Silver Wheaton (SLW) as a pre-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Silver Wheaton

(

SLW

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Silver Wheaton as such a stock due to the following factors:

  • SLW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $157.5 million.
  • SLW traded 12,106 shares today in the pre-market hours as of 8:00 AM.
  • SLW is up 2.6% today from yesterday's close.

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More details on SLW:

Silver Wheaton Corp. operates as a precious metals streaming company worldwide. It has 19 long-term purchase agreements and 1 early deposit long-term purchase agreement associated with silver and gold relating to various 29 mining assets. The stock currently has a dividend yield of 0.9%. Currently there are 11 analysts that rate Silver Wheaton a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Silver Wheaton has been 6.6 million shares per day over the past 30 days. Silver Wheaton has a market cap of $9.6 billion and is part of the basic materials sector and metals & mining industry. Shares are up 83.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Silver Wheaton as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 45.0%. Since the same quarter one year prior, revenues rose by 43.7%. 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 current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.58, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for SILVER WHEATON CORP is rather high; currently it is at 69.80%. Regardless of SLW's high profit margin, it has managed to decrease from the same period last year.
  • SILVER WHEATON CORP's earnings per share declined by 23.1% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SILVER WHEATON CORP swung to a loss, reporting -$0.40 versus $0.55 in the prior year. This year, the market expects an improvement in earnings ($0.55 versus -$0.40).
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, SILVER WHEATON CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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