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Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified LyondellBasell Industries as such a stock due to the following factors:
- LYB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $310.6 million.
- LYB has traded 2.4 million shares today.
- LYB traded in a range 205.1% of the normal price range with a price range of $4.08.
- LYB traded below its daily resistance level (quality: 48 days, meaning that the stock is crossing a resistance level set by the last 48 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on LYB:
LyondellBasell Industries N.V., together with its subsidiaries, manufactures chemicals and polymers; refines crude oil; produces gasoline blending components; and develops and licenses technologies for production of polymers. The stock currently has a dividend yield of 2.5%. LYB has a PE ratio of 15.0. Currently there are 11 analysts that rate LyondellBasell Industries a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for LyondellBasell Industries has been 2.4 million shares per day over the past 30 days. LyondellBasell has a market cap of $58.0 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 2.08 and a short float of 1.5% with 2.14 days to cover. Shares are up 41.1% year-to-date as of the close of trading on Monday.
rates LyondellBasell Industries as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- LYB's revenue growth has slightly outpaced the industry average of 7.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Chemicals industry and the overall market, LYONDELLBASELL INDUSTRIES NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 38.75% and other important driving factors, this stock has surged by 50.93% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LYB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LYONDELLBASELL INDUSTRIES NV has improved earnings per share by 38.8% 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. We feel that this trend should continue. During the past fiscal year, LYONDELLBASELL INDUSTRIES NV increased its bottom line by earning $6.78 versus $4.97 in the prior year. This year, the market expects an improvement in earnings ($8.05 versus $6.78).
- You can view the full LyondellBasell Industries Ratings Report.