New Lifetime High Reached: PolyOne Corporation (POL)

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 PolyOne Corporation ( POL) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified PolyOne Corporation as such a stock due to the following factors:

  • POL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.3 million.
  • POL has traded 397,027 shares today.
  • POL is trading at a new lifetime high.

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More details on POL:

PolyOne Corporation provides specialized polymer materials, services, and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution, and specialty vinyl resins. The stock currently has a dividend yield of 0.8%. POL has a PE ratio of 31.5. Currently there are 5 analysts that rate PolyOne Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for PolyOne Corporation has been 436,000 shares per day over the past 30 days. PolyOne has a market cap of $2.9 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.30 and a short float of 2.4% with 4.47 days to cover. Shares are up 46.4% year to date as of the close of trading on Friday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates PolyOne Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, compelling growth in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 37.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 635.4% when compared to the same quarter one year prior, rising from $24.60 million to $180.90 million.
  • Net operating cash flow has increased to $66.30 million or 26.52% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.04%.
  • Powered by its strong earnings growth of 85.71% and other important driving factors, this stock has surged by 86.15% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • POLYONE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, POLYONE CORP reported lower earnings of $0.60 versus $1.80 in the prior year. This year, the market expects an improvement in earnings ($1.25 versus $0.60).

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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