Today's Dead Cat Bounce Stock Is US Concrete (USCR)

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

Trade-Ideas LLC identified

US Concrete

(

USCR

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

  • USCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.4 million.
  • USCR has traded 171,340 shares today.
  • USCR is up 3% today.
  • USCR was down 9.5% yesterday.

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More details on USCR:

U.S. Concrete, Inc., through its subsidiaries, produces and sells ready-mixed concrete, aggregates, and concrete-related products and services for the construction industry in the United States. It operates through two segments, Ready-Mixed Concrete and Aggregate Products. USCR has a PE ratio of 56. Currently there are 2 analysts that rate US Concrete a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for US Concrete has been 186,700 shares per day over the past 30 days. US Concrete has a market cap of $845.6 million and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.15 and a short float of 6.8% with 3.51 days to cover. Shares are up 84.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates US Concrete as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 35.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 129.30% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • 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 Construction Materials industry and the overall market on the basis of return on equity, U S CONCRETE INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for U S CONCRETE INC is rather low; currently it is at 21.41%. Regardless of USCR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, USCR's net profit margin of 3.96% compares favorably to the industry average.
  • The debt-to-equity ratio is very high at 2.41 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, USCR maintains a poor quick ratio of 0.95, which illustrates the inability to avoid short-term cash problems.

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