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 Rayonier ( RYN) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Rayonier as such a stock due to the following factors:
- RYN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $80.7 million.
- RYN is down 2.1% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in RYN with the Ticky from Trade-Ideas. See the FREE profile for RYN NOW at Trade-Ideas More details on RYN: Rayonier, Inc. engages in the sale and development of real estate and timberland management, as well as in the production and sale of cellulose fibers in the United States, New Zealand, and Australia. The stock currently has a dividend yield of 4.2%. RYN has a PE ratio of 18.7. Currently there is 1 analyst that rates Rayonier a buy, 1 analyst rates it a sell, and 3 rate it a hold. The average volume for Rayonier has been 750,500 shares per day over the past 30 days. Rayonier has a market cap of $5.9 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.97 and a short float of 3% with 2.10 days to cover. Shares are down 9.3% year to date as of the close of trading on Thursday. 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 Rayonier as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. 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. In comparison to the other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, RAYONIER INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- RAYONIER INC's earnings per share declined by 29.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, RAYONIER INC reported lower earnings of $2.14 versus $2.20 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $2.14).
- 39.17% is the gross profit margin for RAYONIER INC which we consider to be strong. Regardless of RYN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RYN's net profit margin of 14.91% is significantly lower than the industry average.
- RYN, with its decline in revenue, underperformed when compared the industry average of 10.8%. Since the same quarter one year prior, revenues slightly dropped by 5.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Rayonier Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.