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

UIL Holdings

(

UIL

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified UIL Holdings as such a stock due to the following factors:

  • UIL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.1 million.
  • UIL has traded 50,353 shares today.
  • UIL is down 5.9% today.
  • UIL was up 23% yesterday.

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More details on UIL:

UIL Holdings Corporation, through its subsidiaries, operates in the regulated utility businesses. The company operates in the Electric Distribution, Electric Transmission, and Gas Distribution segments. The stock currently has a dividend yield of 4.1%. UIL has a PE ratio of 20.5. Currently there are 5 analysts that rate UIL Holdings a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for UIL Holdings has been 347,900 shares per day over the past 30 days. UIL has a market cap of $2.4 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.63 and a short float of 3.2% with 1.88 days to cover. Shares are down 2.8% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates UIL Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, good cash flow from operations, increase in stock price during the past year and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • UIL HOLDINGS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, UIL HOLDINGS CORP increased its bottom line by earning $2.18 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $2.18).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electric Utilities industry. The net income increased by 142.5% when compared to the same quarter one year prior, rising from $5.16 million to $12.50 million.
  • Net operating cash flow has increased to $42.79 million or 26.83% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.62%.
  • 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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