Trade-Ideas: Eldorado Gold (EGO) Is Today's "Dead Cat Bounce" Stock
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 a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Eldorado Gold as such a stock due to the following factors:
- EGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.3 million.
- EGO has traded 392,071 shares today.
- EGO is up 3.2% today.
- EGO was down 7.4% yesterday.
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More details on EGO:
Eldorado Gold Corporation, together with its subsidiaries, is engaged in the exploration, discovery, development, production, and reclamation of gold properties in Brazil, China, Greece, Turkey, and Romania. The company also explores for iron, silver, lead, zinc, and copper ores. The stock currently has a dividend yield of 0.3%. EGO has a PE ratio of 41.4. Currently there are 7 analysts that rate Eldorado Gold a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Eldorado Gold has been 7.6 million shares per day over the past 30 days. Eldorado has a market cap of $4.2 billion and is part of the basic materials sector and metals & mining industry. Shares are down 11.7% year-to-date as of the close of trading on Monday.
Analysis:
rates Eldorado Gold as a
. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- EGO has underperformed the S&P 500 Index, declining 19.16% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- 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 Metals & Mining industry and the overall market on the basis of return on equity, ELDORADO GOLD CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- 47.36% is the gross profit margin for ELDORADO GOLD CORP which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.37% trails the industry average.
- ELDORADO GOLD CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, ELDORADO GOLD CORP turned its bottom line around by earning $0.14 versus -$0.91 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 102.0% when compared to the same quarter one year prior, rising from -$687.55 million to $13.92 million.
- You can view the full Eldorado Gold Ratings Report.
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