Coeur Mining (CDE) Is Today's Dead Cat Bounce 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 Coeur Mining ( CDE) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Coeur Mining as such a stock due to the following factors:

  • CDE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.8 million.
  • CDE has traded 219,321 shares today.
  • CDE is up 5.1% today.
  • CDE was down 5% yesterday.

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More details on CDE:

Coeur Mining, Inc., through its subsidiaries, is engaged in the ownership, operation, exploration, and development of silver and gold mining properties primarily in the United States, Mexico, Bolivia, Argentina, Australia, Ecuador, and Chile. Currently there are 2 analysts that rate Coeur Mining a buy, 3 analysts rate it a sell, and 5 rate it a hold.

The average volume for Coeur Mining has been 3.2 million shares per day over the past 30 days. Coeur has a market cap of $446.9 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.68 and a short float of 14.3% with 3.78 days to cover. Shares are down 57.9% year-to-date as of the close of trading on Tuesday.

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

Highlights from the ratings report include:
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, COEUR MINING INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COEUR MINING INC is currently lower than what is desirable, coming in at 26.34%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.02% significantly trails the industry average.
  • CDE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 57.61%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • CDE, with its decline in revenue, underperformed when compared the industry average of 3.5%. Since the same quarter one year prior, revenues fell by 14.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • COEUR MINING INC reported significant earnings per share improvement 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, COEUR MINING INC swung to a loss, reporting -$6.44 versus $0.54 in the prior year. This year, the market expects an improvement in earnings (-$1.07 versus -$6.44).

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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