Stock To Watch: Green Plains (GPRE) In Perilous Reversal
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
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 Green Plains as such a stock due to the following factors:
- GPRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.2 million
- GPRE has traded 305,556 shares today
- GPRE is down 3.9% today
- GPRE was up 15% yesterday
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More details on GPRE:
Green Plains Inc. produces, markets, and distributes ethanol in the United States. The company operates through four segments: Ethanol Production, Corn Oil Production, Agribusiness, and Marketing and Distribution. The stock currently has a dividend yield of 1.2%. GPRE has a PE ratio of 6.45999999999999996447286321199499070644378662109375. Currently there are three analysts that rate Green Plains a buy, no analysts rate it a sell, and two rate it a hold.
The average volume for Green Plains has been 1.3 million shares per day over the past 30 days. Green Plains has a market cap of $962 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.28 and a short float of 22.9% with 4.41 days to cover. Shares are up 3.2% year-to-date as of the close of trading on Monday.
Analysis:
rates Green Plains as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 19.8%. Since the same quarter one year prior, revenues rose by 16.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 65.9% when compared to the same quarter one year prior, rising from $25.46 million to $42.24 million.
- Net operating cash flow has significantly increased by 70.80% to -$4.02 million when compared to the same quarter last year. In addition, GREEN PLAINS INC has also vastly surpassed the industry average cash flow growth rate of -11.94%.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, GREEN PLAINS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full Green Plains Ratings Report
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