Trade-Ideas: Cameron International (CAM) Is Today's Unusual Social Activity Stock

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 Cameron International ( CAM) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Cameron International as such a stock due to the following factors:

  • CAM has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.50 mentions/day.
  • CAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $160.8 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on CAM:

Cameron International Corporation provides flow equipment products, systems, and services worldwide. CAM has a PE ratio of 22.0. Currently there are 10 analysts that rate Cameron International a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Cameron International has been 3.0 million shares per day over the past 30 days. Cameron International has a market cap of $13.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.19 and a short float of 3.3% with 2.71 days to cover. Shares are up 9% year-to-date as of the close of trading on Thursday.

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 Cameron International as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 21.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CAMERON INTERNATIONAL CORP has improved earnings per share by 8.0% 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, CAMERON INTERNATIONAL CORP reported lower earnings of $2.90 versus $3.02 in the prior year. This year, the market expects an improvement in earnings ($3.80 versus $2.90).
  • Net operating cash flow has increased to $631.30 million or 15.89% when compared to the same quarter last year. Despite an increase in cash flow, CAMERON INTERNATIONAL CORP's average is still marginally south of the industry average growth rate of 23.52%.
  • Despite currently having a low debt-to-equity ratio of 0.49, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.07 is sturdy.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Energy Equipment & Services industry. The net income increased by 1.1% when compared to the same quarter one year prior, going from $218.30 million to $220.80 million.

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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