New Lifetime High Today: CST Brands (CST)

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

  • CST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.4 million.
  • CST has traded 13,045 shares today.
  • CST is trading at a new lifetime high.

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More details on CST:

CST Brands, Inc., through its subsidiaries, operates as an independent retailer of motor fuel and convenience merchandise items in the United States and Canada. The stock currently has a dividend yield of 0.6%. CST has a PE ratio of 22.3. Currently there are 2 analysts that rate CST Brands a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for CST Brands has been 578,300 shares per day over the past 30 days. CST has a market cap of $3.2 billion and is part of the services sector and specialty retail industry. Shares are up 13% 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 CST Brands as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 50.90% and other important driving factors, this stock has surged by 25.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although CST had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 53.6% when compared to the same quarter one year prior, rising from $41.00 million to $63.00 million.
  • CST, with its decline in revenue, slightly underperformed the industry average of 1.1%. Since the same quarter one year prior, revenues slightly dropped by 3.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for CST BRANDS INC is currently extremely low, coming in at 6.29%. Regardless of CST's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.32% trails the industry average.
  • The debt-to-equity ratio of 1.47 is relatively high when compared with the industry average, suggesting a need for better debt level management.

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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