Century Aluminum Company (CENX) Is Today's Perilous Reversal Stock

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 Century Aluminum Company ( CENX) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Century Aluminum Company as such a stock due to the following factors:

  • CENX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.1 million.
  • CENX has traded 468,886 shares today.
  • CENX is down 3.3% today.
  • CENX was up 17.6% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CENX with the Ticky from Trade-Ideas. See the FREE profile for CENX NOW at Trade-Ideas

More details on CENX:

Century Aluminum Company, together with its subsidiaries, produces and sells primary aluminum primarily in the United States and Iceland. It offers high purity primary aluminum, molten aluminum, standard-grade ingots, extrusion billets, and other value-added primary aluminum products. Currently there are 3 analysts that rate Century Aluminum Company a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Century Aluminum Company has been 736,200 shares per day over the past 30 days. Century Aluminum has a market cap of $746.1 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.14 and a short float of 7.3% with 2.56 days to cover. Shares are down 3.9% 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 Century Aluminum Company as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:
  • CENX's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 108.82% to $0.58 million when compared to the same quarter last year. In addition, CENTURY ALUMINUM CO has also vastly surpassed the industry average cash flow growth rate of -13.48%.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
  • CENTURY ALUMINUM CO 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CENTURY ALUMINUM CO swung to a loss, reporting -$0.41 versus $0.07 in the prior year. For the next year, the market is expecting a contraction of 102.4% in earnings (-$0.83 versus -$0.41).
  • 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 181.6% when compared to the same quarter one year ago, falling from -$12.28 million to -$34.57 million.

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

null

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers