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 Buenaventura Mining ( BVN) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Buenaventura Mining as such a stock due to the following factors:

  • BVN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.2 million.
  • BVN has traded 871,716 shares today.
  • BVN is down 3.1% today.
  • BVN was up 5.1% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BVN with the Ticky from Trade-Ideas. See the FREE profile for BVN NOW at Trade-Ideas

More details on BVN:

Compania de Minas Buenaventura S.A.A., a precious metals company, is engaged in the exploration, mining, and processing of gold and silver. It also explores for other metals, including lead, zinc, and copper. The stock currently has a dividend yield of 0.4%. Currently there is 1 analyst that rates Buenaventura Mining a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Buenaventura Mining has been 1.8 million shares per day over the past 30 days. Buenaventura has a market cap of $2.3 billion and is part of the basic materials sector and metals & mining industry. Shares are down 17.9% 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 Buenaventura Mining as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, generally disappointing historical performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:
  • The gross profit margin for MINAS BUENAVENTURA SA is currently lower than what is desirable, coming in at 29.30%. It has decreased significantly from the same period last year. Regardless of the weak results of the gross profit margin, the net profit margin of 24.66% is above that of the industry average.
  • 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 on the basis of return on equity, MINAS BUENAVENTURA SA has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • BVN has underperformed the S&P 500 Index, declining 10.14% 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.
  • BVN, with its decline in revenue, underperformed when compared the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 8.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • MINAS BUENAVENTURA SA has improved earnings per share by 19.2% 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, MINAS BUENAVENTURA SA swung to a loss, reporting -$0.40 versus $2.77 in the prior year. This year, the market expects an improvement in earnings ($0.53 versus -$0.40).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null