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Trade-Ideas LLC identified
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified SolarCity as such a stock due to the following factors:
- SCTY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $222.0 million.
- SCTY traded 10,233 shares today in the pre-market hours as of 8:20 AM.
- SCTY is up 2.4% today from yesterday's close.
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More details on SCTY:
SolarCity Corporation designs, installs, and sells or leases solar energy systems to residential and commercial customers, and government entities in the United States. Currently there are 5 analysts that rate SolarCity a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for SolarCity has been 4.4 million shares per day over the past 30 days. SolarCity has a market cap of $5.1 billion and is part of the technology sector and electronics industry. Shares are down 4.3% year-to-date as of the close of trading on Wednesday.
rates SolarCity as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.
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 Electrical Equipment industry. The net income has decreased by 20.8% when compared to the same quarter one year ago, dropping from -$39.46 million to -$47.65 million.
- The debt-to-equity ratio of 1.48 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, SCTY maintains a poor quick ratio of 0.93, which illustrates the inability to avoid short-term cash problems.
- Net operating cash flow has significantly decreased to -$36.49 million or 149.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- SOLARCITY CORP reported flat earnings per share in the most recent quarter. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SOLARCITY CORP reported poor results of -$0.80 versus -$0.56 in the prior year. For the next year, the market is expecting a contraction of 417.5% in earnings (-$4.14 versus -$0.80).
- SCTY has underperformed the S&P 500 Index, declining 6.44% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full SolarCity Ratings Report.