Sears Holdings (SHLD) Showing Signs Of A Dead Cat Bounce Today
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Sears Holdings as such a stock due to the following factors:
- SHLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.5 million.
- SHLD has traded 68,400 shares today.
- SHLD is up 3.3% today.
- SHLD was down 5.4% yesterday.
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More details on SHLD:
Sears Holdings Corporation operates as a retailer in the United States. It operates in two segments, Kmart and Sears Domestic. Currently there are no analysts that rate Sears Holdings a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Sears Holdings has been 741,600 shares per day over the past 30 days. Sears has a market cap of $1.2 billion and is part of the services sector and retail industry. The stock has a beta of 1.49 and a short float of 53.6% with 10.08 days to cover. Shares are down 48% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Sears Holdings as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, 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 Multiline Retail industry. The net income has significantly decreased by 264.8% when compared to the same quarter one year ago, falling from -$159.00 million to -$580.00 million.
- The gross profit margin for SEARS HOLDINGS CORP is rather low; currently it is at 22.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.94% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$113.00 million or 120.36% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 69.75%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 262.66% compared to 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.
- SEARS HOLDINGS 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 company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SEARS HOLDINGS CORP continued to lose money by earning -$10.71 versus -$15.83 in the prior year. For the next year, the market is expecting a contraction of 40.7% in earnings (-$15.07 versus -$10.71).
- You can view the full Sears Holdings Ratings Report.
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