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

US Silica Holdings

(

SLCA

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified US Silica Holdings as such a stock due to the following factors:

  • SLCA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.7 million.
  • SLCA has traded 344,823 shares today.
  • SLCA is down 3.5% today.
  • SLCA was up 15.8% yesterday.

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More details on SLCA:

U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. It operates through two segments, Oil & Gas Proppants, and Industrial & Specialty Products. The stock currently has a dividend yield of 2.3%. SLCA has a PE ratio of 1. Currently there are 11 analysts that rate US Silica Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for US Silica Holdings has been 1.8 million shares per day over the past 30 days. US Silica has a market cap of $1.2 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.81 and a short float of 36.7% with 6.35 days to cover. Shares are down 2.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates US Silica Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 22.1%. Since the same quarter one year prior, revenues rose by 13.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Even though the current debt-to-equity ratio is 1.24, it is still below the industry average, suggesting that this level of debt is acceptable within the Energy Equipment & Services industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.56 is very high and demonstrates very strong liquidity.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, U S SILICA HOLDINGS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • U S SILICA HOLDINGS INC's earnings per share declined by 20.6% in the most recent quarter compared to 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, U S SILICA HOLDINGS INC increased its bottom line by earning $2.24 versus $1.41 in the prior year. For the next year, the market is expecting a contraction of 72.1% in earnings ($0.63 versus $2.24).

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