Today's Unusual Social Activity Stock: Dow Chemical (DOW)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Dow Chemical as such a stock due to the following factors:
- DOW has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 11.65 mentions/day.
- DOW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $363.9 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on DOW:
The Dow Chemical Company manufactures and supplies chemical products for use as raw materials in the manufacture of customer products and services worldwide. The stock currently has a dividend yield of 3.4%. DOW has a PE ratio of 17.3. Currently there are 6 analysts that rate Dow Chemical a buy, 3 analysts rate it a sell, and 9 rate it a hold.
The average volume for Dow Chemical has been 9.4 million shares per day over the past 30 days. Dow Chemical has a market cap of $57.4 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.76 and a short float of 2.5% with 4.12 days to cover. Shares are up 7.2% year-to-date as of the close of trading on Thursday.
Analysis:
rates Dow Chemical as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.88, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $2,757.00 million or 23.46% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.99%.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.7%. Since the same quarter one year prior, revenues slightly dropped by 0.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- DOW CHEMICAL's earnings per share declined by 20.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, DOW CHEMICAL reported lower earnings of $2.86 versus $3.61 in the prior year. This year, the market expects an improvement in earnings ($2.88 versus $2.86).
- You can view the full Dow Chemical Ratings Report.
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