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Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Dresser-Rand Group as such a stock due to the following factors:
- DRC has 18x the normal benchmarked social activity for this time of the day compared to its average of 4.32 mentions/day.
- DRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $257.6 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on DRC:
Dresser-Rand Group Inc., together with its subsidiaries, designs, manufactures, sells, and services rotating equipment solutions to the oil, gas, chemical, petrochemical, process, power generation, military, and other industries worldwide. DRC has a PE ratio of 44.0. Currently there are 5 analysts that rate Dresser-Rand Group a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Dresser-Rand Group has been 1.3 million shares per day over the past 30 days. Dresser-Rand Group has a market cap of $5.6 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.00 and a short float of 6.6% with 0.80 days to cover. Shares are up 34% year-to-date as of the close of trading on Friday.
rates Dresser-Rand Group as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 244.66% to $35.50 million when compared to the same quarter last year. In addition, DRESSER-RAND GROUP INC has also vastly surpassed the industry average cash flow growth rate of 24.84%.
- DRESSER-RAND GROUP INC's earnings per share declined by 44.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, DRESSER-RAND GROUP INC reported lower earnings of $2.19 versus $2.35 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $2.19).
- The revenue fell significantly faster than the industry average of 19.1%. Since the same quarter one year prior, revenues fell by 22.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- DRC's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.85 is weak.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Dresser-Rand Group Ratings Report.