Trade-Ideas: Staples (SPLS) Is Today's Pre-Market Leader Stock
Trade-Ideas LLC identified
(
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Staples as such a stock due to the following factors:
- SPLS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $150.7 million.
- SPLS traded 10,600 shares today in the pre-market hours as of 8:09 AM.
- SPLS is up 2.6% today from yesterday's close.
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More details on SPLS:
Staples, Inc., together with its subsidiaries, operates office products superstores. It operates in three segments: North American Stores & Online, North American Commercial, and International Operations. The stock currently has a dividend yield of 5.8%. SPLS has a PE ratio of 15. Currently there are no analysts that rate Staples a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for Staples has been 10.3 million shares per day over the past 30 days. Staples has a market cap of $5.3 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.54 and a short float of 3.9% with 1.39 days to cover. Shares are down 15.4% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Staples as a
. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.84 is somewhat weak and could be cause for future problems.
- The gross profit margin for STAPLES INC is currently lower than what is desirable, coming in at 27.17%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.80% trails that of the industry average.
- Net operating cash flow has declined marginally to $276.00 million or 8.00% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Staples Ratings Report.
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