Post-Market Activity Shows McGraw Hill Financial (MHFI) Down

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 McGraw Hill Financial ( MHFI) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified McGraw Hill Financial as such a stock due to the following factors:

  • MHFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $136.5 million.
  • MHFI is down 8.9% today from today's close.

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More details on MHFI:

McGraw Hill Financial, Inc., a financial intelligence company, provides credit ratings, benchmarks, and analytics to capital and commodity markets worldwide. The stock currently has a dividend yield of 1.5%. MHFI has a PE ratio of 27.4. Currently there are 7 analysts that rate McGraw Hill Financial a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for McGraw Hill Financial has been 1.6 million shares per day over the past 30 days. McGraw Hill Financial has a market cap of $21.4 billion and is part of the services sector and diversified services industry. Shares are up 0.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates McGraw Hill Financial as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Financial Services industry. The net income increased by 179.6% when compared to the same quarter one year prior, rising from -$216.00 million to $172.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 2.0%. 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.
  • Compared to its closing price of one year ago, MHFI's share price has jumped by 61.76%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MHFI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MCGRAW HILL FINANCIAL's earnings per share declined by 7.5% 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, MCGRAW HILL FINANCIAL increased its bottom line by earning $2.90 versus $2.38 in the prior year. This year, the market expects an improvement in earnings ($3.79 versus $2.90).

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