Praxair (PX): Stock With Unusual Social Activity - TheStreet

Trade-Ideas LLC identified

Praxair

(

PX

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Praxair as such a stock due to the following factors:

  • PX has 18x the normal benchmarked social activity for this time of the day compared to its average of 2.37 mentions/day.
  • PX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $153.3 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on PX:

Praxair, Inc. produces, sells, and distributes atmospheric, process, and specialty gases, as well as surface coatings in North America, Europe, South America, and Asia. The stock currently has a dividend yield of 2.6%. PX has a PE ratio of 21. Currently there are 7 analysts that rate Praxair a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Praxair has been 1.9 million shares per day over the past 30 days. Praxair has a market cap of $31.3 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.85 and a short float of 3.5% with 7.44 days to cover. Shares are down 15.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Praxair as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • 44.63% is the gross profit margin for PRAXAIR INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.24% trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Chemicals industry and the overall market on the basis of return on equity, PRAXAIR INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 14.8%. Since the same quarter one year prior, revenues fell by 12.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income 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 has significantly decreased by 34.0% when compared to the same quarter one year ago, falling from $467.00 million to $308.00 million.
  • Currently the debt-to-equity ratio of 1.88 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, PX maintains a poor quick ratio of 0.84, which illustrates the inability to avoid short-term cash problems.

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