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 "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified RCS Capital as such a stock due to the following factors:
- RCAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.0 million.
- RCAP has traded 69,189 shares today.
- RCAP is down 3.3% today.
- RCAP was up 6.3% yesterday.
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More details on RCAP:
RCS Capital Corporation, through its subsidiaries, is engaged in the retail brokerage & advisory services, wholesale broker-dealer, and investment banking and capital markets business activities.
The average volume for RCS Capital has been 1.2 million shares per day over the past 30 days. RCS has a market cap of $795.7 million and is part of the financial sector and financial services industry. Shares are down 29.4% year-to-date as of the close of trading on Tuesday.
rates RCS Capital as a
. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to -$108.86 million or 468.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for RCS CAPITAL CORP is rather low; currently it is at 15.30%. Regardless of RCAP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RCAP's net profit margin of 7.55% is significantly lower than the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 36.31%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 35000.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- RCS CAPITAL CORP 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. This year, the market expects an improvement in earnings ($1.95 versus $0.10).
- Compared to other companies in the Capital Markets industry and the overall market, RCS CAPITAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full RCS Capital Ratings Report.