Trade-Ideas LLC identified

US Silica Holdings

(

SLCA

) as a strong on high relative volume 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 $68.8 million.
  • SLCA has traded 143,668 shares today.
  • SLCA is trading at 2.24 times the normal volume for the stock at this time of day.
  • SLCA is trading at a new high 3.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 through two segments, Oil & Gas Proppants, and Industrial & Specialty Products. The stock currently has a dividend yield of 0.8%. Currently there are 9 analysts that rate US Silica Holdings a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for US Silica Holdings has been 2.1 million shares per day over the past 30 days. US Silica has a market cap of $2.0 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.74 and a short float of 24.4% with 6.02 days to cover. Shares are up 73.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates US Silica Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • SLCA's debt-to-equity ratio of 0.88 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 7.47 is very high and demonstrates very strong liquidity.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • SLCA, with its decline in revenue, slightly underperformed the industry average of 35.8%. Since the same quarter one year prior, revenues fell by 39.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for U S SILICA HOLDINGS INC is currently extremely low, coming in at 12.86%. It has decreased significantly from the same period last year.
  • Net operating cash flow has significantly decreased to -$3.75 million or 118.97% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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