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 Huntsman Corporation ( HUN) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Huntsman Corporation as such a stock due to the following factors:
- HUN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $76.6 million.
- HUN traded 322,420 shares today in the pre-market hours as of 9:17 AM, representing 10.4% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HUN with the Ticky from Trade-Ideas. See the FREE profile for HUN NOW at Trade-Ideas More details on HUN: Huntsman Corporation, together with its subsidiaries, manufactures and sells differentiated organic and inorganic chemical products worldwide. The company operates in five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments. The stock currently has a dividend yield of 2.1%. HUN has a PE ratio of 43.1. Currently there are 5 analysts that rate Huntsman Corporation a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Huntsman Corporation has been 3.7 million shares per day over the past 30 days. Huntsman has a market cap of $5.7 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 2.69 and a short float of 3.5% with 2.02 days to cover. Shares are down 3.1% year-to-date as of the close of trading on Friday. 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 Huntsman Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins. 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 Chemicals industry. The net income increased by 202.5% when compared to the same quarter one year prior, rising from -$40.00 million to $41.00 million.
- HUN's revenue growth trails the industry average of 14.1%. Since the same quarter one year prior, revenues slightly increased by 3.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- HUNTSMAN CORP 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, HUNTSMAN CORP reported lower earnings of $0.54 versus $1.53 in the prior year. This year, the market expects an improvement in earnings ($2.13 versus $0.54).
- Currently the debt-to-equity ratio of 1.98 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, HUN maintains a poor quick ratio of 0.97, which illustrates the inability to avoid short-term cash problems.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Chemicals industry and the overall market, HUNTSMAN CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Huntsman Corporation 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.