SunPower (SPWR) Showing Signs Of Perilous Reversal Today
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 SunPower as such a stock due to the following factors:
- SPWR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.3 million.
- SPWR has traded 131,239 shares today.
- SPWR is down 3.4% today.
- SPWR was up 5.8% yesterday.
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More details on SPWR:
SunPower Corporation designs, manufactures, and delivers solar systems to residential, commercial, and utility-scale power plant customers worldwide. The company offers solar power components, including panels, balance of system components, and inverters. SPWR has a PE ratio of 57. Currently there are 10 analysts that rate SunPower a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for SunPower has been 1.3 million shares per day over the past 30 days. SunPower has a market cap of $3.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 3.50 and a short float of 15.1% with 4.04 days to cover. Shares are down 8.4% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates SunPower as a
. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. 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:
- SUNPOWER 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUNPOWER CORP increased its bottom line by earning $1.56 versus $0.57 in the prior year. This year, the market expects an improvement in earnings ($1.99 versus $1.56).
- The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.74 is somewhat weak and could be cause for future problems.
- The revenue fell significantly faster than the industry average of 10.8%. Since the same quarter one year prior, revenues fell by 42.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of SUNPOWER CORP has not done very well: it is down 14.48% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 275.8% when compared to the same quarter one year ago, falling from $32.03 million to -$56.33 million.
- You can view the full SunPower Ratings Report.
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