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Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tenaris as such a stock due to the following factors:
- TS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.4 million.
- TS has traded 779,189 shares today.
- TS traded in a range 211.8% of the normal price range with a price range of $1.19.
- TS traded below its daily resistance level (quality: 4 days, meaning that the stock is crossing a resistance level set by the last 4 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on TS:
Tenaris S.A., through its subsidiaries, is engaged in the steel pipe manufacturing and distribution activities. The stock currently has a dividend yield of 1.9%. TS has a PE ratio of 17.7. Currently there is 1 analyst that rates Tenaris a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Tenaris has been 1.1 million shares per day over the past 30 days. Tenaris has a market cap of $27.4 billion and is part of the basic materials sector and metals & mining industry. Shares are up 7.3% year-to-date as of the close of trading on Monday.
rates Tenaris as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- TS's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TS has a quick ratio of 1.91, which demonstrates the ability of the company to cover short-term liquidity needs.
- 44.48% is the gross profit margin for TENARIS SA which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.37% is above that of the industry average.
- Net operating cash flow has slightly increased to $611.84 million or 8.59% when compared to the same quarter last year. Despite an increase in cash flow, TENARIS SA's cash flow growth rate is still lower than the industry average growth rate of 49.33%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- TENARIS SA reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, TENARIS SA reported lower earnings of $2.62 versus $2.88 in the prior year. This year, the market expects an improvement in earnings ($2.76 versus $2.62).
- You can view the full Tenaris Ratings Report.