LyondellBasell Industries (LYB) Hits New Lifetime High Today

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 LyondellBasell Industries ( LYB) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified LyondellBasell Industries as such a stock due to the following factors:

  • LYB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $247.2 million.
  • LYB has traded 335,029 shares today.
  • LYB is trading at a new lifetime high.

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More details on LYB:

LyondellBasell Industries N.V., together with its subsidiaries, manufactures chemicals and polymers; refines crude oil; produces gasoline blending components; and develops and licenses technologies for production of polymers. The stock currently has a dividend yield of 2.9%. LYB has a PE ratio of 13.8. Currently there are 11 analysts that rate LyondellBasell Industries a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for LyondellBasell Industries has been 3.2 million shares per day over the past 30 days. LyondellBasell has a market cap of $50.2 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 2.21 and a short float of 2% with 3.62 days to cover. Shares are up 19.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates LyondellBasell Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 47.24% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LYB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • LYONDELLBASELL INDUSTRIES NV has improved earnings per share by 10.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LYONDELLBASELL INDUSTRIES NV increased its bottom line by earning $6.78 versus $4.97 in the prior year. This year, the market expects an improvement in earnings ($7.41 versus $6.78).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Chemicals industry average, but is less than that of the S&P 500. The net income increased by 4.9% when compared to the same quarter one year prior, going from $901.00 million to $945.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.3%. Since the same quarter one year prior, revenues slightly increased by 4.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.

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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