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 Companhia Siderurgica Nacional ( SID) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Companhia Siderurgica Nacional as such a stock due to the following factors:
- SID has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.5 million.
- SID has traded 847,961 shares today.
- SID is up 3.1% today.
- SID was down 7.9% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SID with the Ticky from Trade-Ideas. See the FREE profile for SID NOW at Trade-Ideas More details on SID: Companhia Siderurgica Nacional operates as an integrated steel producer primarily in Brazil. The company principally produces carbon steel and various steel products for automotive, home appliance, packaging, construction, and steel processing industries. The stock currently has a dividend yield of 6.4%. Currently there are no analysts that rate Companhia Siderurgica Nacional a buy, 3 analysts rate it a sell, and 1 rates it a hold. The average volume for Companhia Siderurgica Nacional has been 5.5 million shares per day over the past 30 days. Companhia Siderurgica Nacional has a market cap of $7.2 billion and is part of the basic materials sector and metals & mining industry. Shares are down 27.1% 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 Companhia Siderurgica Nacional as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow. Highlights from the ratings report include:
- SID's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues rose by 13.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Metals & Mining industry and the overall market, COMPANHIA SIDERURGICA NACION's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- COMPANHIA SIDERURGICA NACION 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, COMPANHIA SIDERURGICA NACION swung to a loss, reporting -$0.14 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus -$0.14).
- Net operating cash flow has decreased to $272.23 million or 32.78% when compared to the same quarter last year. Despite a decrease in cash flow of 32.78%, COMPANHIA SIDERURGICA NACION is in line with the industry average cash flow growth rate of -33.83%.
- SID has underperformed the S&P 500 Index, declining 8.07% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full Companhia Siderurgica Nacional 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.