Trade-Ideas: Staples (SPLS) Is Today's Post-Market Leader Stock
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 $80.9 million.
- SPLS is up 4.4% 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 through three segments: North American Stores & Online, North American Commercial, and International Operations. The stock currently has a dividend yield of 3.8%. SPLS has a PE ratio of 14. Currently there are 6 analysts that rate Staples a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Staples has been 8.2 million shares per day over the past 30 days. Staples has a market cap of $8.1 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.42 and a short float of 5.1% with 5.20 days to cover. Shares are down 29.9% year-to-date as of the close of trading on Monday.
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Analysis:
rates Staples as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 100.00% to $0.00 million when compared to the same quarter last year. In addition, STAPLES INC has also vastly surpassed the industry average cash flow growth rate of -11.31%.
- SPLS's debt-to-equity ratio is very low at 0.21 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 0.72 is somewhat weak and could be cause for future problems.
- SPLS, with its decline in revenue, underperformed when compared the industry average of 8.6%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 56.0% when compared to the same quarter one year ago, falling from $81.88 million to $36.00 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Specialty Retail industry and the overall market, STAPLES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Staples Ratings Report.
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