Stifel Financial (SF) Marked As A Dead Cat Bounce Stock

Trade-Ideas LLC identified Stifel Financial (SF) as a "dead cat bounce" (down big yesterday but up big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Stifel Financial

(

SF

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Stifel Financial as such a stock due to the following factors:

  • SF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.1 million.
  • SF has traded 55,155 shares today.
  • SF is up 3.3% today.
  • SF was down 6.3% yesterday.

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More details on SF:

Stifel Financial Corp., a financial holding company, provides retail and institutional wealth management, and investment banking services primarily in the United States. SF has a PE ratio of 23. Currently there are 2 analysts that rate Stifel Financial a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Stifel Financial has been 537,900 shares per day over the past 30 days. Stifel Financial has a market cap of $3.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.32 and a short float of 3.9% with 3.86 days to cover. Shares are down 15.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stifel Financial as a

hold

. Among the primary strengths of the company is its revenue growth. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.6%. Since the same quarter one year prior, revenues rose by 12.5%. 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.
  • STIFEL FINANCIAL CORP 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. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest an upward trend in the coming year. During the past fiscal year, STIFEL FINANCIAL CORP reported lower earnings of $2.32 versus $2.33 in the prior year. This year, the market expects an improvement in earnings ($2.86 versus $2.32).
  • 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 Capital Markets industry. The net income has significantly decreased by 56.9% when compared to the same quarter one year ago, falling from $39.90 million to $17.18 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Capital Markets industry and the overall market, STIFEL FINANCIAL CORP's return on equity is below that of both the industry average and the S&P 500.
  • In its most recent trading session, SF has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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