US Silica Holdings (SLCA) Showing Signs Of A Dead Cat Bounce Today - TheStreet

Trade-Ideas LLC identified

US Silica Holdings

(

SLCA

) as a "dead cat bounce" (down big yesterday but up big today) 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 $31.4 million.
  • SLCA has traded 52,868 shares today.
  • SLCA is up 13.5% today.
  • SLCA was down 7.5% yesterday.

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More details on SLCA:

U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. It operates through two segments, Oil & Gas Proppants, and Industrial & Specialty Products. The stock currently has a dividend yield of 3.1%. SLCA has a PE ratio of 9. Currently there are 6 analysts that rate US Silica Holdings a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for US Silica Holdings has been 2.2 million shares per day over the past 30 days. US Silica has a market cap of $868.6 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.76 and a short float of 31.9% with 8.04 days to cover. Shares are down 36.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates US Silica Holdings as a

hold

. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, 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 return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market, U S SILICA HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 31.2%. Since the same quarter one year prior, revenues fell by 28.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • U S SILICA HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, U S SILICA HOLDINGS INC increased its bottom line by earning $2.24 versus $1.41 in the prior year. For the next year, the market is expecting a contraction of 83.5% in earnings ($0.37 versus $2.24).
  • Net operating cash flow has decreased to $18.67 million or 25.05% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, U S SILICA HOLDINGS INC has marginally lower results.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Energy Equipment & Services industry. The net income has significantly decreased by 65.3% when compared to the same quarter one year ago, falling from $28.65 million to $9.95 million.

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