US Silica Holdings (SLCA) Highlighted As Today's Perilous Reversal 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 "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified US Silica Holdings as such a stock due to the following factors:
- SLCA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $90.9 million.
- SLCA has traded 137,069 shares today.
- SLCA is down 3.3% today.
- SLCA was up 5.5% yesterday.
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More details on SLCA:
U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. The company operates in two segments, Oil & Gas Proppants, and Industrial & Specialty Products. The stock currently has a dividend yield of 1.7%. SLCA has a PE ratio of 13.5. Currently there are 11 analysts that rate US Silica Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for US Silica Holdings has been 3.3 million shares per day over the past 30 days. US Silica has a market cap of $1.6 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 3.23 and a short float of 29.3% with 5.40 days to cover. Shares are up 19.6% year-to-date as of the close of trading on Thursday.
Analysis:
rates US Silica Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- SLCA's very impressive revenue growth greatly exceeded the industry average of 14.4%. Since the same quarter one year prior, revenues leaped by 67.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Energy Equipment & Services industry and the overall market, U S SILICA HOLDINGS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- 36.82% is the gross profit margin for U S SILICA HOLDINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.31% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 102.0% when compared to the same quarter one year prior, rising from $16.45 million to $33.24 million.
- U S SILICA HOLDINGS INC 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, U S SILICA HOLDINGS INC increased its bottom line by earning $2.24 versus $1.41 in the prior year. For the next year, the market is expecting a contraction of 33.0% in earnings ($1.50 versus $2.24).
- You can view the full US Silica Holdings Ratings Report.
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