Trade-Ideas: Iamgold (IAG) Is Today's

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 Iamgold ( IAG) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Iamgold as such a stock due to the following factors:

  • IAG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.1 million.
  • IAG has traded 16.3 million shares today.
  • IAG is up 3.3% today.
  • IAG was down 5.3% yesterday.

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More details on IAG:

IAMGOLD Corporation engages in the exploration, development, and operation of mining properties. Its products include gold, silver, niobium, and copper deposits. The stock currently has a dividend yield of 3.7%. IAG has a PE ratio of 17.7. Currently there are 3 analysts that rate Iamgold a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Iamgold has been 7.3 million shares per day over the past 30 days. Iamgold has a market cap of $2.5 billion and is part of the basic materials sector and metals & mining industry. Shares are down 41.5% year to date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Iamgold as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. 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:
  • IAG's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, IAG has a quick ratio of 2.16, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 43.08% is the gross profit margin for IAMGOLD CORP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, IAG's net profit margin of -9.43% significantly underperformed when compared to the industry average.
  • IAMGOLD CORP has exprienced 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, IAMGOLD CORP reported lower earnings of $0.89 versus $1.03 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 Metals & Mining industry. The net income has significantly decreased by 153.7% when compared to the same quarter one year ago, falling from $52.90 million to -$28.40 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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