TheStreet's Quant Ratings stock-modeling service is reaffirming its "Sell" recommendation on Sears Holdings (SHLD) , which is Friday's "Stock of the Day" at our premium Web site Real Money. Sears has plummeted from $44.20 a share to just over $1 in the nearly seven years since our model downgraded the stock to a "Sell" from a "Hold" on Dec. 2, 2011.
TheStreet's executive editor Brian Sozzi discusses why Sears latest earnings are terrible. Survival isn't guaranteed.
Quant Ratings evaluates thousands of stocks on a daily basis using a quantitative model that combines fundamental analysis of a firm's latest financial statements with technical analysis of a stock's price moves. You can check out Quant Ratings here.
Below is an excerpt from the service's latest analysis of Sears:
Recently, TheStreet Quant Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Quant Ratings has this to say about the recommendation:
We rate Sears as a Sell with a ratings score of E+. This is based on a variety of negative investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here:
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet, Inc. or any of its contributors