Trade-Ideas: SunEdison (SUNE) 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.
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified SunEdison as such a stock due to the following factors:
- SUNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $226.3 million.
- SUNE is up 2.1% today from today's close.
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More details on SUNE:
SunEdison, Inc. develops, manufactures, and sells silicon wafers to the semiconductor industry. The company operates through three segments: Solar Energy, TerraForm Power, and Semiconductor Materials. Currently there are 8 analysts that rate SunEdison a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for SunEdison has been 10.3 million shares per day over the past 30 days. SunEdison has a market cap of $6.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 4.87 and a short float of 33.6% with 9.21 days to cover. Shares are up 23.7% year-to-date as of the close of trading on Monday.
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Analysis:
rates SunEdison as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- SUNE's revenue growth has slightly outpaced the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 10.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- SUNEDISON INC has improved earnings per share by 16.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUNEDISON INC reported poor results of -$4.42 versus -$2.39 in the prior year. This year, the market expects an improvement in earnings (-$1.49 versus -$4.42).
- The gross profit margin for SUNEDISON INC is currently lower than what is desirable, coming in at 29.07%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, SUNE's net profit margin of -39.67% significantly underperformed when compared to the industry average.
- The debt-to-equity ratio is very high at 4.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, SUNE has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full SunEdison Ratings Report.
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