Today's Perilous Reversal Stock: Tahoe Resources (TAHO)

Trade-Ideas LLC identified Tahoe Resources (TAHO) as a "perilous reversal" (up big yesterday but down big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Tahoe Resources

(

TAHO

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tahoe Resources as such a stock due to the following factors:

  • TAHO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.8 million.
  • TAHO has traded 634,717 shares today.
  • TAHO is down 3% today.
  • TAHO was up 5.4% yesterday.

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More details on TAHO:

Tahoe Resources Inc., together with its subsidiaries, explores, develops, and operates mines in the Americas. The company primarily produces copper, gold, silver, lead/zinc, and natural gas and petroleum. The stock currently has a dividend yield of 1.6%. Currently there are 5 analysts that rate Tahoe Resources a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Tahoe Resources has been 2.3 million shares per day over the past 30 days. Tahoe has a market cap of $3.6 billion and is part of the basic materials sector and metals & mining industry. Shares are up 87.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tahoe Resources 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 increase in net income. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:

  • TAHO's very impressive revenue growth greatly exceeded the industry average of 45.6%. Since the same quarter one year prior, revenues leaped by 54.9%. 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.
  • TAHO's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for TAHOE RESOURCES INC is rather high; currently it is at 55.18%. Regardless of TAHO's high profit margin, it has managed to decrease from the same period last year.
  • TAHOE RESOURCES INC's earnings per share declined by 22.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, TAHOE RESOURCES INC swung to a loss, reporting -$0.24 versus $0.61 in the prior year.
  • Net operating cash flow has declined marginally to $25.29 million or 1.86% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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