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 an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified U.S. Bancorp as such a stock due to the following factors:
- USB has 11x the normal benchmarked social activity for this time of the day compared to its average of 3.44 mentions/day.
- USB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $303.1 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on USB:
U.S. Bancorp, a financial services holding company, provides a range of financial services in the United States. Its services include lending and depository services, cash management, capital market, and trust and investment management services. The stock currently has a dividend yield of 2.4%. USB has a PE ratio of 12.9. Currently there are 10 analysts that rate U.S. Bancorp a buy, 2 analysts rate it a sell, and 12 rate it a hold.
The average volume for U.S. Bancorp has been 7.5 million shares per day over the past 30 days. U.S has a market cap of $70.0 billion and is part of the financial sector and banking industry. The stock has a beta of 0.77 and a short float of 1.2% with 2.81 days to cover. Shares are up 21% year to date as of the close of trading on Tuesday.
rates U.S. Bancorp as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, growth in earnings per share, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 766.80% to $2,141.00 million when compared to the same quarter last year. In addition, U S BANCORP has also vastly surpassed the industry average cash flow growth rate of 74.32%.
- U S BANCORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, U S BANCORP increased its bottom line by earning $2.84 versus $2.45 in the prior year. This year, the market expects an improvement in earnings ($3.01 versus $2.84).
- The gross profit margin for U S BANCORP is currently very high, coming in at 86.50%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 27.98% trails the industry average.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. 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.
- USB, with its decline in revenue, slightly underperformed the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 6.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full U.S. Bancorp Ratings Report.