Trade-Ideas: Potash Corporation Of Saskatchewan (POT) Is Today's Pre-Market Laggard Stock

Trade-Ideas LLC identified Potash Corporation of Saskatchewan (POT) as a pre-market laggard candidate
By Daniel Mirkin ,

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

Potash Corporation of Saskatchewan

(

POT

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Potash Corporation of Saskatchewan as such a stock due to the following factors:

  • POT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $249.4 million.
  • POT traded 13,988 shares today in the pre-market hours as of 7:46 AM.
  • POT is down 4.5% today from yesterday's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in POT with the Ticky from Trade-Ideas. See the FREE profile for POT NOW at Trade-Ideas

More details on POT:

Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. The stock currently has a dividend yield of 3.6%. POT has a PE ratio of 15.8. Currently there are 11 analysts that rate Potash Corporation of Saskatchewan a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for Potash Corporation of Saskatchewan has been 5.0 million shares per day over the past 30 days. Potash Corporation of Saskatchewan has a market cap of $33.4 billion and is part of the basic materials sector and chemicals industry. Shares are down 6.4% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Potash Corporation of Saskatchewan as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 20.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 98.38% to $738.00 million when compared to the same quarter last year. In addition, POTASH CORP SASK INC has also vastly surpassed the industry average cash flow growth rate of -364.21%.
  • 45.62% is the gross profit margin for POTASH CORP SASK INC which we consider to be strong. Regardless of POT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, POT's net profit margin of 26.47% significantly outperformed against the industry.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Chemicals industry average. The net income increased by 13.2% when compared to the same quarter one year prior, going from $491.00 million to $556.00 million.
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

Loading ...