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 NewMarket Corporation as such a stock due to the following factors:
- NEU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.6 million.
- NEU has traded 3,207 shares today.
- NEU is trading at a new lifetime high.
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More details on NEU:
NewMarket Corporation, through its subsidiaries, is engaged in the petroleum additives businesses. The stock currently has a dividend yield of 1.1%. NEU has a PE ratio of 21.3. Currently there are no analysts that rate NewMarket Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for NewMarket Corporation has been 56,000 shares per day over the past 30 days. NewMarket has a market cap of $5.0 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.01 and a short float of 11.8% with 19.54 days to cover. Shares are up 15.5% year-to-date as of the close of trading on Thursday.
rates NewMarket Corporation as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 8.4%. 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 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, NEU has a quick ratio of 2.22, which demonstrates the ability of the company to cover short-term liquidity needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 47.44% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NEU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- NEWMARKET CORP has improved earnings per share by 5.2% 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, NEWMARKET CORP increased its bottom line by earning $18.21 versus $17.68 in the prior year. This year, the market expects an improvement in earnings ($19.25 versus $18.21).
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Chemicals industry average. The net income increased by 1.8% when compared to the same quarter one year prior, going from $53.06 million to $54.00 million.
- You can view the full NewMarket Corporation Ratings Report.