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 Praxair ( PX) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Praxair as such a stock due to the following factors:
- PX has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 0.94 mentions/day.
- PX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $173.3 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in PX with the Ticky from Trade-Ideas. See the FREE profile for PX NOW at Trade-Ideas More details on PX: Praxair, Inc. engages in the production, distribution, and sale atmospheric and process gases, as well as surface coatings in North America, Europe, South America, and Asia. The stock currently has a dividend yield of 1.9%. PX has a PE ratio of 22.2. Currently there are 10 analysts that rate Praxair a buy, 1 analyst rates it a sell, and 5 rate it a hold. The average volume for Praxair has been 992,300 shares per day over the past 30 days. Praxair has a market cap of $37.0 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.69 and a short float of 1.2% with 2.73 days to cover. Shares are down 3.3% 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 Praxair as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- PX's revenue growth has slightly outpaced the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
- 43.68% is the gross profit margin for PRAXAIR INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.76% is above that of the industry average.
- Net operating cash flow has increased to $904.00 million or 21.17% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.65%.
- PRAXAIR INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PRAXAIR INC increased its bottom line by earning $5.61 versus $5.45 in the prior year. This year, the market expects an improvement in earnings ($5.93 versus $5.61).
- You can view the full Praxair 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.