Trade-Ideas: AK Steel (AKS) Is Today's Post-Market Leader 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 AK Steel ( AKS) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified AK Steel as such a stock due to the following factors:

  • AKS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.2 million.
  • AKS is up 3.8% today from today's close.

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More details on AKS:

AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, stainless and electrical steel, and tubular products in the United States and internationally. Currently there are 3 analysts that rate AK Steel a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for AK Steel has been 14.1 million shares per day over the past 30 days. AK has a market cap of $920.8 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.56 and a short float of 30.2% with 4.50 days to cover. Shares are down 36.3% year-to-date as of the close of trading on Monday.

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 AK Steel as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The gross profit margin for AK STEEL HOLDING CORP is currently extremely low, coming in at 12.65%. Regardless of AKS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AKS's net profit margin of -0.45% significantly underperformed when compared to the industry average.
  • AKS has underperformed the S&P 500 Index, declining 7.47% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • AK STEEL HOLDING CORP reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, AK STEEL HOLDING CORP continued to lose money by earning -$0.34 versus -$9.10 in the prior year. This year, the market expects an improvement in earnings (-$0.19 versus -$0.34).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 77.3% when compared to the same quarter one year prior, rising from -$31.70 million to -$7.20 million.
  • Net operating cash flow has significantly increased by 58.47% to -$49.50 million when compared to the same quarter last year. In addition, AK STEEL HOLDING CORP has also vastly surpassed the industry average cash flow growth rate of -29.96%.

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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