Trade-Ideas: Isle Of Capri Casinos (ISLE) Is Today's

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 Isle of Capri Casinos ( ISLE) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Isle of Capri Casinos as such a stock due to the following factors:

  • ISLE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.9 million.
  • ISLE has traded 74,658 shares today.
  • ISLE is up 4.7% today.
  • ISLE was down 8.8% yesterday.

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

More details on ISLE:

Isle of Capri Casinos, Inc., together with its subsidiaries, develops, owns, and operates regional gaming facilities and related dining, lodging, and entertainment facilities in the United States. ISLE has a PE ratio of 144. Currently there is 1 analyst that rates Isle of Capri Casinos a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Isle of Capri Casinos has been 311,100 shares per day over the past 30 days. Isle of Capri Casinos has a market cap of $762.5 million and is part of the services sector and leisure industry. The stock has a beta of 1.26 and a short float of 2.8% with 0.66 days to cover. Shares are up 124.4% year-to-date as of the close of trading on Friday.

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 Isle of Capri Casinos as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 5.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ISLE OF CAPRI CASINOS INC reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, ISLE OF CAPRI CASINOS INC turned its bottom line around by earning $0.12 versus -$3.25 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus $0.12).
  • 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 Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, ISLE OF CAPRI CASINOS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Powered by its strong earnings growth of 102.27% and other important driving factors, this stock has surged by 164.88% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The debt-to-equity ratio is very high at 42.32 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, ISLE maintains a poor quick ratio of 0.73, which illustrates the inability to avoid short-term cash problems.

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

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Video: Stop Using Student Loan Money to Buy Bitcoin

Video: Stop Using Student Loan Money to Buy Bitcoin

Let the Najarian Brothers Crash-Proof Portfolio

Let the Najarian Brothers Crash-Proof Portfolio

Facebook Sends Facial Recognition Notification in Error

Facebook Sends Facial Recognition Notification in Error

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists