Trade-Ideas: Staples (SPLS) Is Today's Post-Market Leader 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 post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Staples as such a stock due to the following factors:
- SPLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $187.1 million.
- SPLS is up 4.5% today from today's close.
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More details on SPLS:
Staples, Inc., together with its subsidiaries, operates office products superstores. It operates in three segments: North American Stores & Online, North American Commercial, and International Operations. The stock currently has a dividend yield of 2.9%. SPLS has a PE ratio of 18.1. Currently there are 2 analysts that rate Staples a buy, no analysts rate it a sell, and 12 rate it a hold.
The average volume for Staples has been 14.6 million shares per day over the past 30 days. Staples has a market cap of $10.8 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.52 and a short float of 5.5% with 3.28 days to cover. Shares are down 8.4% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Staples as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows low 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 Specialty Retail industry. The net income increased by 60.3% when compared to the same quarter one year prior, rising from $135.23 million to $216.79 million.
- Net operating cash flow has increased to $604.60 million or 14.60% when compared to the same quarter last year. In addition, STAPLES INC has also modestly surpassed the industry average cash flow growth rate of 13.79%.
- SPLS's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.76 is somewhat weak and could be cause for future problems.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Staples Ratings Report.
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