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Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified US Silica Holdings as such a stock due to the following factors:
- SLCA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.8 million.
- SLCA has traded 706,962 shares today.
- SLCA traded in a range 211.4% of the normal price range with a price range of $4.86.
- SLCA traded below its daily resistance level (quality: 269 days, meaning that the stock is crossing a resistance level set by the last 269 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on SLCA:
U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. The company operates in two segments, Oil & Gas Proppants, and Industrial & Specialty Products. The stock currently has a dividend yield of 1.1%. SLCA has a PE ratio of 23.2. Currently there are 12 analysts that rate US Silica Holdings a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for US Silica Holdings has been 3.3 million shares per day over the past 30 days. US Silica has a market cap of $2.4 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 3.49 and a short float of 16.4% with 2.61 days to cover. Shares are up 28.1% year-to-date as of the close of trading on Tuesday.
rates US Silica Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- SLCA's very impressive revenue growth greatly exceeded the industry average of 3.0%. Since the same quarter one year prior, revenues leaped by 67.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 38.24% is the gross profit margin for U S SILICA HOLDINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.10% is above that of the industry average.
- Net operating cash flow has significantly increased by 181.91% to $51.77 million when compared to the same quarter last year. In addition, U S SILICA HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -54.81%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 93.5% when compared to the same quarter one year prior, rising from $21.33 million to $41.28 million.
- SLCA's debt-to-equity ratio of 0.94 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.57 is very high and demonstrates very strong liquidity.
- You can view the full US Silica Holdings Ratings Report.