Trade-Ideas LLC identified Schnitzer Steel Industries ( SCHN) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Schnitzer Steel Industries as such a stock due to the following factors:

  • SCHN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.6 million.
  • SCHN has traded 84,108 shares today.
  • SCHN is up 5.1% today.
  • SCHN was down 5.9% yesterday.

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More details on SCHN:

Schnitzer Steel Industries, Inc. recycles ferrous and nonferrous scrap metals; and manufactures finished steel products worldwide. It operates through two segments, Auto and Metals Recycling (AMR) and Steel Manufacturing Business (SMB). The stock currently has a dividend yield of 4%. Currently there are no analysts that rate Schnitzer Steel Industries a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Schnitzer Steel Industries has been 366,200 shares per day over the past 30 days. Schnitzer has a market cap of $519.1 million and is part of the basic materials sector and metals & mining industry. Shares are up 27.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Schnitzer Steel Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, SCHNITZER STEEL INDS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SCHNITZER STEEL INDS is rather low; currently it is at 15.93%. Regardless of SCHN's low profit margin, it has managed to increase from the same period last year.
  • SCHNITZER STEEL INDS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SCHNITZER STEEL INDS swung to a loss, reporting -$7.04 versus $0.33 in the prior year. This year, the market expects an improvement in earnings ($0.13 versus -$7.04).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has significantly decreased by 114.2% when compared to the same quarter one year ago, falling from -$2.47 million to -$5.30 million.
  • SCHN, with its decline in revenue, slightly underperformed the industry average of 39.9%. Since the same quarter one year prior, revenues fell by 42.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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