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 SunEdison ( SUNE) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified SunEdison as such a stock due to the following factors:
- SUNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $228.9 million.
- SUNE has traded 9.4 million shares today.
- SUNE is down 3% today.
- SUNE was up 6.1% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SUNE with the Ticky from Trade-Ideas. See the FREE profile for SUNE NOW at Trade-Ideas More details on SUNE: SunEdison, Inc. develops, manufactures, and sells silicon wafers to the semiconductor industry. The company operates through two segments, Solar Energy and Semiconductor Materials. Currently there are 7 analysts that rate SunEdison a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for SunEdison has been 12.4 million shares per day over the past 30 days. SunEdison has a market cap of $5.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 3.63 and a short float of 26% with 5.64 days to cover. Shares are up 58.4% year-to-date as of the close of trading on Wednesday. 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 SunEdison as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow and feeble growth in its earnings per share. Highlights from the ratings report include:
- 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 571.9% when compared to the same quarter one year ago, falling from -$91.80 million to -$616.80 million.
- The gross profit margin for SUNEDISON INC is rather low; currently it is at 19.98%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -112.86% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$215.20 million or 81.45% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- SUNEDISON INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SUNEDISON INC reported poor results of -$2.39 versus -$0.65 in the prior year. This year, the market expects an improvement in earnings (-$0.39 versus -$2.39).
- Compared to its closing price of one year ago, SUNE's share price has jumped by 169.02%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in SUNE do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full SunEdison 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.