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 post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified PPL as such a stock due to the following factors:
- PPL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $155.6 million.
- PPL is up 2.1% today from today's close.
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More details on PPL:
PPL Corporation, an energy and utility holding company, generates, transmits, distributes, and sells electricity to wholesale and retail customers in the Pennsylvania, Kentucky, Virginia, Tennessee, and the United Kingdom. The company operates in four segments: Kentucky Regulated, U.K. The stock currently has a dividend yield of 4.5%. PPL has a PE ratio of 20.8. Currently there are 4 analysts that rate PPL a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for PPL has been 5.0 million shares per day over the past 30 days. PPL has a market cap of $21.0 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.13 and a short float of 2.2% with 2.97 days to cover. Shares are up 11.6% year-to-date as of the close of trading on Thursday.
rates PPL as a
. The company's strengths can be seen in multiple areas, such as its 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:
- The gross profit margin for PPL CORP is currently very high, coming in at 85.64%. It has increased significantly from the same period last year. Along with this, the net profit margin of 24.53% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 281.55% to $931.00 million when compared to the same quarter last year. In addition, PPL CORP has also vastly surpassed the industry average cash flow growth rate of 18.42%.
- 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.
- PPL CORP's earnings per share declined by 24.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, PPL CORP reported lower earnings of $1.74 versus $2.61 in the prior year. This year, the market expects an improvement in earnings ($2.23 versus $1.74).
- The revenue fell significantly faster than the industry average of 9.2%. Since the same quarter one year prior, revenues fell by 47.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full PPL Ratings Report.