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Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified ITT Educational Services as such a stock due to the following factors:
- ESI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.7 million.
- ESI has traded 1.2 million shares today.
- ESI is down 3.1% today.
- ESI was up 9% yesterday.
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More details on ESI:
ITT Educational Services, Inc. provides postsecondary degree programs in the United States. ESI has a PE ratio of 3.1. Currently there are 2 analysts that rate ITT Educational Services a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for ITT Educational Services has been 884,000 shares per day over the past 30 days. ITT Educational Services has a market cap of $182.8 million and is part of the services sector and diversified services industry. Shares are down 74.6% year-to-date as of the close of trading on Wednesday.
rates ITT Educational Services as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself 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 Diversified Consumer Services industry. The net income has decreased by 21.9% when compared to the same quarter one year ago, dropping from -$9.47 million to -$11.55 million.
- Net operating cash flow has decreased to $60.96 million or 29.60% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Looking at the price performance of ESI's shares over the past 12 months, there is not much good news to report: the stock is down 45.75%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- ITT EDUCATIONAL SERVICES INC's earnings per share declined by 19.5% in the most recent quarter compared to 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, ITT EDUCATIONAL SERVICES INC reported lower earnings of $2.53 versus $5.76 in the prior year. This year, the market expects an improvement in earnings ($2.65 versus $2.53).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Diversified Consumer Services industry and the overall market, ITT EDUCATIONAL SERVICES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full ITT Educational Services Ratings Report.