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 new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Diamond Resorts International as such a stock due to the following factors:
- DRII has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.6 million.
- DRII has traded 9,850 shares today.
- DRII is trading at a new lifetime high.
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More details on DRII:
Diamond Resorts International, Inc. operates in the hospitality and vacation ownership industry in the United States, Hawaii, Canada, Mexico, the Caribbean, Central America, South America, Europe, Asia, Australia, and Africa. Currently there are 2 analysts that rate Diamond Resorts International a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Diamond Resorts International has been 366,700 shares per day over the past 30 days. Diamond Resorts International has a market cap of $1.7 billion and is part of the services sector and leisure industry. Shares are up 28% year-to-date as of the close of trading on Wednesday.
rates Diamond Resorts International as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 115.2% when compared to the same quarter one year ago, falling from $17.96 million to -$2.73 million.
- Although DRII's debt-to-equity ratio of 3.74 is very high, it is currently less than that of the industry average.
- DIAMOND RESORTS INTL has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, DIAMOND RESORTS INTL swung to a loss, reporting -$0.04 versus $0.19 in the prior year. This year, the market expects an improvement in earnings ($0.88 versus -$0.04).
- Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
- Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, DIAMOND RESORTS INTL's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Diamond Resorts International Ratings Report.