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 Nordic American Tankers ( NAT) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Nordic American Tankers as such a stock due to the following factors:
- NAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.8 million.
- NAT has traded 358,635 shares today.
- NAT is down 3.4% today.
- NAT was up 11.1% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in NAT with the Ticky from Trade-Ideas. See the FREE profile for NAT NOW at Trade-Ideas More details on NAT: Nordic American Tankers Limited, a tanker company, engages in acquiring and chartering double-hull tankers. Its fleet consists of 20 double-hull Suezmax tankers. The company was founded in 1995 and is headquartered in Hamilton, Bermuda. The stock currently has a dividend yield of 5.7%. Currently there is 1 analyst that rates Nordic American Tankers a buy, 1 analyst rates it a sell, and 2 rate it a hold. The average volume for Nordic American Tankers has been 1.5 million shares per day over the past 30 days. Nordic American Tankers has a market cap of $848.8 million and is part of the services sector and transportation industry. The stock has a beta of 1.82 and a short float of 16.6% with 2.72 days to cover. Shares are up 29.3% year-to-date as of the close of trading on Tuesday. 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 Nordic American Tankers as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and poor profit margins. Highlights from the ratings report include:
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, NORDIC AMERICAN TANKERS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to -$4.10 million or 31.72% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The gross profit margin for NORDIC AMERICAN TANKERS LTD is currently extremely low, coming in at 8.94%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, NAT's net profit margin of -30.48% significantly underperformed when compared to the industry average.
- NORDIC AMERICAN TANKERS LTD has improved earnings per share by 34.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NORDIC AMERICAN TANKERS LTD continued to lose money by earning -$1.38 versus -$1.53 in the prior year. For the next year, the market is expecting a contraction of 12.7% in earnings (-$1.56 versus -$1.38).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 17.6% when compared to the same quarter one year prior, going from -$23.35 million to -$19.24 million.
- You can view the full Nordic American Tankers 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.