Trade-Ideas LLC identified CVR Energy ( CVI) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified CVR Energy as such a stock due to the following factors:

  • CVI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.3 million.
  • CVI has traded 125,104 shares today.
  • CVI is down 4.9% today.
  • CVI was up 7.2% yesterday.

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More details on CVI:

CVR Energy, Inc., through its subsidiaries, engages in petroleum refining and nitrogen fertilizer manufacturing activities in the United States. The company operates through two segments, Petroleum and Nitrogen Fertilizer. The stock currently has a dividend yield of 14%. CVI has a PE ratio of 33. Currently there are no analysts that rate CVR Energy a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for CVR Energy has been 801,700 shares per day over the past 30 days. CVR Energy has a market cap of $1.2 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.27 and a short float of 29% with 3.48 days to cover. Shares are down 62.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CVR Energy as a hold. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 24.1%. Since the same quarter one year prior, revenues fell by 21.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 61.97%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 71.79% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • CVR ENERGY INC 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CVR ENERGY INC reported lower earnings of $1.95 versus $2.00 in the prior year. For the next year, the market is expecting a contraction of 124.1% in earnings (-$0.47 versus $1.95).
  • The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management.

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