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 Six Flags Entertainment ( SIX) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Six Flags Entertainment as such a stock due to the following factors:
- SIX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.8 million.
- SIX has traded 9,739 shares today.
- SIX is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SIX with the Ticky from Trade-Ideas. See the FREE profile for SIX NOW at Trade-Ideas More details on SIX: Six Flags Entertainment Corporation owns and operates regional theme, water, and zoological parks. The company's parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. The stock currently has a dividend yield of 4.6%. SIX has a PE ratio of 34.7. Currently there are 3 analysts that rate Six Flags Entertainment a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Six Flags Entertainment has been 690,900 shares per day over the past 30 days. Six Flags Entertainment has a market cap of $3.9 billion and is part of the services sector and leisure industry. The stock has a beta of 1.67 and a short float of 6.7% with 3.88 days to cover. Shares are up 11.8% 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 Six Flags Entertainment as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in stock price during the past year and notable return on equity. 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 revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 7.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 43.14% is the gross profit margin for SIX FLAGS ENTERTAINMENT CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.63% trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
- SIX FLAGS ENTERTAINMENT CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, SIX FLAGS ENTERTAINMENT CORP reported lower earnings of $1.20 versus $3.04 in the prior year. This year, the market expects an improvement in earnings ($1.49 versus $1.20).
- 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 Hotels, Restaurants & Leisure industry and the overall market, SIX FLAGS ENTERTAINMENT CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Six Flags Entertainment 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.