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 pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sears Holdings Corporation 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 $44.8 million.
- SHLD traded 139,195 shares today in the pre-market hours as of 8:37 AM, representing 12.4% of its average daily volume.
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More details on SHLD:
Sears Holdings Corporation operates as a specialty retailer in the United States and Canada. The company's Kmart segment operates stores that sell merchandise under Jaclyn Smith and Joe Boxer labels; and Sears brand products, such as Kenmore, Craftsman, and DieHard. Currently there are no analysts that rate Sears Holdings Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Sears Holdings Corporation has been 834,400 shares per day over the past 30 days. Sears has a market cap of $4.3 billion and is part of the services sector and retail industry. The stock has a beta of 2.79 and a short float of 55.8% with 12.60 days to cover. Shares are down 3% year to date as of the close of trading on Tuesday.
rates Sears Holdings Corporation 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, poor profit margins, weak operating cash flow 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 Multiline Retail industry. The net income has significantly decreased by 247.6% when compared to the same quarter one year ago, falling from $189.00 million to -$279.00 million.
- The debt-to-equity ratio of 1.49 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.12, which clearly demonstrates the inability to cover short-term cash needs.
- The gross profit margin for SEARS HOLDINGS CORP is currently lower than what is desirable, coming in at 25.51%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.30% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$713.00 million or 1108.47% 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 26.28%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 247.75% 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.
- You can view the full Sears Holdings Corporation Ratings Report.