FMC Corporation (FMC) Is Water-Logged And Getting Wetter Today

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 FMC Corporation ( FMC) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified FMC Corporation as such a stock due to the following factors:

  • FMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.7 million.
  • FMC has traded 863,608 shares today.
  • FMC traded in a range 226.4% of the normal price range with a price range of $2.22.
  • FMC traded below its daily resistance level (quality: 19 days, meaning that the stock is crossing a resistance level set by the last 19 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on FMC:

FMC Corporation, a diversified chemical company, provides solutions, applications, and products for the agricultural, consumer, and industrial markets in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The stock currently has a dividend yield of 1.1%. FMC has a PE ratio of 20.6. Currently there are 4 analysts that rate FMC Corporation a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for FMC Corporation has been 966,800 shares per day over the past 30 days. FMC has a market cap of $8.1 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.22 and a short float of 5% with 5.31 days to cover. Shares are up 6.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates FMC Corporation as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • 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 182.3% when compared to the same quarter one year prior, rising from $27.10 million to $76.50 million.
  • Net operating cash flow has significantly increased by 939.02% to $172.00 million when compared to the same quarter last year. In addition, FMC CORP has also vastly surpassed the industry average cash flow growth rate of 14.86%.
  • 36.48% is the gross profit margin for FMC CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.00% trails the industry average.
  • Despite the weak revenue results, FMC has outperformed against the industry average of 14.1%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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