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 a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified USEC as such a stock due to the following factors:
- USU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.2 million.
- USU has traded 115,639 shares today.
- USU is down 4.9% today.
- USU was up 5.9% yesterday.
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More details on USU:
USEC Inc., an energy company, engages in the supply of low enriched uranium (LEU) for commercial nuclear power plants in the United States, Japan, and internationally. Its LEU is a component in the production of nuclear fuel for reactors to produce electricity. The stock currently has a dividend yield of 4%.
The average volume for USEC has been 660,100 shares per day over the past 30 days. USEC has a market cap of $44.2 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 4.18 and a short float of 31% with 0.93 days to cover. Shares are up 1684.9% year to date as of the close of trading on Friday.
rates USEC as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- USEC 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, USEC INC reported poor results of -$245.00 versus -$111.75 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 1084.4% when compared to the same quarter one year ago, falling from $4.50 million to -$44.30 million.
- Net operating cash flow has significantly decreased to -$55.80 million or 403.26% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 40.16%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1004.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The revenue fell significantly faster than the industry average of 5.4%. Since the same quarter one year prior, revenues fell by 46.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full USEC Ratings Report.