Clean Energy Fuels (CLNE) Highlighted As Today's Perilous Reversal 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 Clean Energy Fuels ( CLNE) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Clean Energy Fuels as such a stock due to the following factors:

  • CLNE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.1 million.
  • CLNE has traded 121,404 shares today.
  • CLNE is down 3.6% today.
  • CLNE was up 6% yesterday.

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

More details on CLNE:

Clean Energy Fuels Corp. provides natural gas as an alternative fuel for vehicle fleets in the United States and Canada. Currently there are 3 analysts that rate Clean Energy Fuels a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Clean Energy Fuels has been 2.4 million shares per day over the past 30 days. Clean Energy has a market cap of $687.0 million and is part of the utilities sector and utilities industry. The stock has a beta of 2.32 and a short float of 23.1% with 7.59 days to cover. Shares are up 50.4% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Clean Energy Fuels as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity, poor profit margins, generally high debt management risk and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • CLEAN ENERGY FUELS CORP's earnings per share declined by 13.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, CLEAN ENERGY FUELS CORP reported poor results of -$0.95 versus -$0.71 in the prior year. For the next year, the market is expecting a contraction of 10.5% in earnings (-$1.05 versus -$0.95).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CLEAN ENERGY FUELS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CLEAN ENERGY FUELS CORP is rather low; currently it is at 24.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -36.28% is significantly below that of the industry average.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, CLNE has underperformed the S&P 500 Index, declining 15.26% 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.
  • The debt-to-equity ratio of 1.44 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.84, which shows the ability to cover short-term cash needs.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Global Stocks Mixed as Oil, Commodity Price Surges Ignite Fresh Inflation Talk

Global Stocks Mixed as Oil, Commodity Price Surges Ignite Fresh Inflation Talk

P&G Buys Consumer Healthcare Unit From Germany's Merck in First Peltz-Era Deal

P&G Buys Consumer Healthcare Unit From Germany's Merck in First Peltz-Era Deal

Amazon's Stock Spikes After Jeff Bezos Says He Has 100 Million Prime Members

Amazon's Stock Spikes After Jeff Bezos Says He Has 100 Million Prime Members

Oil Prices Soaring to $100 Makes These 4 Stocks Winners

Oil Prices Soaring to $100 Makes These 4 Stocks Winners

Amazon, Procter & Gamble, Southwest and Netflix - 5 Things You Must Know

Amazon, Procter & Gamble, Southwest and Netflix - 5 Things You Must Know