Today's Strong And Under The Radar Stock: CVR Energy (CVI)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified CVR Energy as such a stock due to the following factors:
- CVI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.2 million.
- CVI has traded 78.9552000000000049340087571181356906890869140625 options contracts today.
- CVI is making at least a new 3-day high.
- CVI has a PE ratio of 18.
- CVI is mentioned 0.94 times per day on StockTwits.
- CVI has not yet been mentioned on StockTwits today.
- CVI is currently in the upper 20% of its 1-year range.
- CVI is in the upper 35% of its 20-day range.
- CVI is in the upper 45% of its 5-day range.
- CVI is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on CVI:
CVR Energy, Inc., through its subsidiaries, engages in petroleum refining and nitrogen fertilizer manufacturing activities in the United States. The company operates through two segments, Petroleum and Nitrogen Fertilizer. The stock currently has a dividend yield of 4.5%. CVI has a PE ratio of 18.
The average volume for CVR Energy has been 304,100 shares per day over the past 30 days. CVR Energy has a market cap of $3.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.29 and a short float of 13.6% with 6.57 days to cover. Shares are up 17.7% year-to-date as of the close of trading on Monday.
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Analysis:
rates CVR Energy as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- 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 632.9% when compared to the same quarter one year prior, rising from $7.90 million to $57.90 million.
- The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- CVR ENERGY INC reported significant earnings per share improvement in the most recent quarter compared to 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, CVR ENERGY INC reported lower earnings of $2.00 versus $4.27 in the prior year. This year, the market expects an improvement in earnings ($2.59 versus $2.00).
- 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. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, CVR ENERGY INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- CVI has underperformed the S&P 500 Index, declining 7.53% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full CVR Energy Ratings Report.
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