Perilous Reversal Watch: Scorpio Tankers (STNG)

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

  • STNG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.6 million.
  • STNG has traded 313,891 shares today.
  • STNG is down 3.1% today.
  • STNG was up 8% yesterday.

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

More details on STNG:

Scorpio Tankers Inc., together with its subsidiaries, provides seaborne transportation of refined petroleum products and crude oil worldwide. The stock currently has a dividend yield of 3%. Currently there are 4 analysts that rate Scorpio Tankers a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Scorpio Tankers has been 1.2 million shares per day over the past 30 days. Scorpio Tankers has a market cap of $1.9 billion and is part of the services sector and transportation industry. Shares are down 13.7% year-to-date as of the close of trading on Monday.

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 Scorpio Tankers as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • Compared to its price level of one year ago, STNG is up 12.10% to its most recent closing price of 9.26. Looking ahead, our view is that this company's fundamentals should not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • STNG's very impressive revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues leaped by 101.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SCORPIO TANKERS INC reported significant earnings per share improvement 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. During the past fiscal year, SCORPIO TANKERS INC continued to lose money by earning -$0.65 versus -$2.59 in the prior year.
  • The gross profit margin for SCORPIO TANKERS INC is rather low; currently it is at 23.36%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.15% trails the industry average.
  • Net operating cash flow has significantly decreased to -$0.58 million or 128.47% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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

If you liked this article you might like

In Market Selloffs, Remember the Difference Between 'Cheap' and 'Lower'

In Market Selloffs, Remember the Difference Between 'Cheap' and 'Lower'

How Competition Drives Stocks Nowhere: Cramer's 'Mad Money' Recap (Tuesday 7/11/17)

How Competition Drives Stocks Nowhere: Cramer's 'Mad Money' Recap (Tuesday 7/11/17)

Alexion Pharmaceuticals, Incyte, Walt Disney: 'Mad Money' Lightning Round

Alexion Pharmaceuticals, Incyte, Walt Disney: 'Mad Money' Lightning Round

Worst Over for Scorpio Tankers, Basing Action Starting

Worst Over for Scorpio Tankers, Basing Action Starting

'Mad Money' Lightning Round: United and Southwest Better Than JetBlue?

'Mad Money' Lightning Round: United and Southwest Better Than JetBlue?