Trade-Ideas: Companhia Siderurgica Nacional (SID) Is Today's Strong And Under The Radar Stock

Trade-Ideas LLC identified Companhia Siderurgica Nacional ( SID) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Companhia Siderurgica Nacional as such a stock due to the following factors:

  • SID has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.0 million.
  • SID has traded 167.955000000000012505552149377763271331787109375 options contracts today.
  • SID is making at least a new 3-day high.
  • SID has a PE ratio of 14.
  • SID is mentioned 1.55 times per day on StockTwits.
  • SID has not yet been mentioned on StockTwits today.
  • SID is currently in the upper 20% of its 1-year range.
  • SID is in the upper 35% of its 20-day range.
  • SID is in the upper 45% of its 5-day range.
  • SID is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on SID:

Companhia Siderurgica Nacional operates as an integrated steel producer in Brazil. It operates through five segments: Steel, Mining, Logistics, Cement, and Energy. SID has a PE ratio of 14. Currently there are no analysts that rate Companhia Siderurgica Nacional a buy, 3 analysts rate it a sell, and none rate it a hold.

The average volume for Companhia Siderurgica Nacional has been 2.3 million shares per day over the past 30 days. Companhia Siderurgica Nacional has a market cap of $4.4 billion and is part of the basic materials sector and metals & mining industry. Shares are up 220.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Companhia Siderurgica Nacional as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally high debt management risk, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 291.4% when compared to the same quarter one year ago, falling from $123.12 million to -$235.69 million.
  • Net operating cash flow has significantly decreased to -$264.63 million or 151.31% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for COMPANHIA SIDERURGICA NACION is currently lower than what is desirable, coming in at 32.00%. Regardless of SID's low profit margin, it has managed to increase from the same period last year.
  • The debt-to-equity ratio is very high at 4.42 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, SID has managed to keep a strong quick ratio of 1.88, which demonstrates the ability to cover short-term cash needs.
  • COMPANHIA SIDERURGICA NACION 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, COMPANHIA SIDERURGICA NACION turned its bottom line around by earning $0.23 versus -$0.16 in the prior year. For the next year, the market is expecting a contraction of 686.5% in earnings (-$1.35 versus $0.23).

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