Dresser-Rand Group (DRC) Hits New Lifetime High 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 Dresser-Rand Group ( DRC) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Dresser-Rand Group as such a stock due to the following factors:

  • DRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.1 million.
  • DRC has traded 3,044 shares today.
  • DRC is trading at a new lifetime high.

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More details on DRC:

Dresser-Rand Group Inc., together with its subsidiaries, designs, manufactures, sells, and services rotating equipment solutions to the oil, gas, chemical, petrochemical, process, power generation, military, and other industries worldwide. DRC has a PE ratio of 8. Currently there are no analysts that rate Dresser-Rand Group a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Dresser-Rand Group has been 715,900 shares per day over the past 30 days. Dresser-Rand Group has a market cap of $6.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.43 and a short float of 6.6% with 5.17 days to cover. Shares are up 3.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dresser-Rand Group as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, DRC's share price has jumped by 34.90%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • DRC, with its decline in revenue, underperformed when compared the industry average of 1.8%. Since the same quarter one year prior, revenues fell by 26.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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. In comparison to the other companies in the Energy Equipment & Services industry and the overall market, DRESSER-RAND GROUP INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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