Trade-Ideas: LyondellBasell Industries (LYB) Is Today's Pre-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.

Trade-Ideas LLC identified LyondellBasell Industries ( LYB) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified LyondellBasell Industries as such a stock due to the following factors:

  • LYB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $523.1 million.
  • LYB traded 10,401 shares today in the pre-market hours as of 9:29 AM.
  • LYB is up 5.5% today from yesterday's close.

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More details on LYB:

LyondellBasell Industries N.V. operates as a manufacturer of chemicals and polymers, refiner of crude oil, producer of gasoline blending components, and developer and licensor of technologies for production of polymers. The stock currently has a dividend yield of 2.7%. LYB has a PE ratio of 11.8. Currently there are 8 analysts that rate LyondellBasell Industries a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for LyondellBasell Industries has been 4.1 million shares per day over the past 30 days. LyondellBasell has a market cap of $48.7 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.77 and a short float of 2.5% with 1.68 days to cover. Shares are up 29.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates LyondellBasell Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • LYONDELLBASELL INDUSTRIES NV has improved earnings per share by 40.7% 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. During the past fiscal year, LYONDELLBASELL INDUSTRIES NV increased its bottom line by earning $7.97 versus $6.78 in the prior year. This year, the market expects an improvement in earnings ($9.16 versus $7.97).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 23.4% when compared to the same quarter one year prior, going from $945.00 million to $1,166.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Chemicals industry and the overall market, LYONDELLBASELL INDUSTRIES NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 83.27% to $1,468.00 million when compared to the same quarter last year. In addition, LYONDELLBASELL INDUSTRIES NV has also vastly surpassed the industry average cash flow growth rate of -24.91%.

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