Post-Market Activity Shows CIT Group (CIT) 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 CIT Group ( CIT) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified CIT Group as such a stock due to the following factors:

  • CIT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.2 million.
  • CIT is down 5.1% today from today's close.

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More details on CIT:

CIT Group Inc. operates as the holding company for CIT bank that provides commercial financing and leasing products; and a suite of savings options in the United States. The stock currently has a dividend yield of 0.8%. CIT has a PE ratio of 14.6. Currently there are 9 analysts that rate CIT Group a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for CIT Group has been 1.3 million shares per day over the past 30 days. CIT Group has a market cap of $9.7 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.57 and a short float of 1.1% with 1.97 days to cover. Shares are down 4.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CIT Group as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:
  • CIT GROUP INC's earnings per share declined by 36.9% 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, CIT GROUP INC turned its bottom line around by earning $3.36 versus -$2.96 in the prior year. This year, the market expects an improvement in earnings ($3.95 versus $3.36).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.7%. Since the same quarter one year prior, revenues slightly dropped by 8.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 37.2% when compared to the same quarter one year ago, falling from $206.80 million to $129.90 million.
  • Net operating cash flow has significantly decreased to $180.90 million or 65.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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