Today's Strong And Under The Radar Stock: Sociedad Quimica Y Minera De Chile (SQM)

Trade-Ideas LLC identified Sociedad Quimica Y Minera De Chile (SQM) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Sociedad Quimica Y Minera De Chile

(

SQM

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Sociedad Quimica Y Minera De Chile as such a stock due to the following factors:

  • SQM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
  • SQM has traded 143.62700000000000954969436861574649810791015625 options contracts today.
  • SQM is making at least a new 3-day high.
  • SQM has a PE ratio of 31.
  • SQM is mentioned 1.77 times per day on StockTwits.
  • SQM has not yet been mentioned on StockTwits today.
  • SQM is currently in the upper 20% of its 1-year range.
  • SQM is in the upper 35% of its 20-day range.
  • SQM is in the upper 45% of its 5-day range.
  • SQM 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 SQM:

Chemical and Mining Company of Chile Inc. produces and sells specialty plant nutrients, industrial chemicals, iodine and derivatives, lithium and derivatives, potassium, and other products and services. The stock currently has a dividend yield of 1.3%. SQM has a PE ratio of 31. Currently there are no analysts that rate Sociedad Quimica Y Minera De Chile a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Sociedad Quimica Y Minera De Chile has been 723,000 shares per day over the past 30 days. Sociedad Quimica Y Minera De Chile has a market cap of $6.5 billion and is part of the basic materials sector and chemicals industry. Shares are up 30% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sociedad Quimica Y Minera De Chile as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and deteriorating net income.

Highlights from the ratings report include:

  • SQM's revenue growth has slightly outpaced the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 1.1%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, SQM has a quick ratio of 2.13, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 45.79% is the gross profit margin for SOC QUIMICA Y MINERA DE CHI which we consider to be strong. Regardless of SQM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SQM's net profit margin of 14.93% compares favorably to the industry average.
  • 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. In comparison to the other companies in the Chemicals industry and the overall market, SOC QUIMICA Y MINERA DE CHI's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $102.35 million or 10.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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