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.
Trade-Ideas LLC identified
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Olin as such a stock due to the following factors:
- OLN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.0 million.
- OLN traded 106,933 shares today in the pre-market hours as of 9:13 AM, representing 10.5% of its average daily volume.
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More details on OLN:
Olin Corporation manufactures and sells chlor alkali products in the United States and internationally. The company operates through three segments: Chlor Alkali Products, Chemical Distribution, and Winchester. The stock currently has a dividend yield of 2.9%. OLN has a PE ratio of 21.2. Currently there are 2 analysts that rate Olin a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Olin has been 834,500 shares per day over the past 30 days. Olin has a market cap of $2.2 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.31 and a short float of 7.9% with 4.81 days to cover. Shares are up 18.8% year-to-date as of the close of trading on Wednesday.
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rates Olin as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels 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:
- The debt-to-equity ratio is somewhat low, currently at 0.67, 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 1.43, which illustrates the ability to avoid short-term cash problems.
- OLIN CORP's earnings per share declined by 48.4% 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 two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, OLIN CORP reported lower earnings of $1.32 versus $2.21 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $1.32).
- OLN, with its decline in revenue, slightly underperformed the industry average of 4.8%. Since the same quarter one year prior, revenues fell by 11.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, OLN has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Olin Ratings Report.