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 or Stephanie Link. aTheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock. aClick here to learn more. NEW YORK (TheStreet) -- Westmoreland Coala has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. aTheStreet Ratings Team has this to say about their recommendation: "We rate WESTMORELAND COAL CO (WLB) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow and feeble growth in its earnings per share." Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Highlights from the analysis by TheStreet Ratings Team goes as follows: 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 Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 22295.4% when compared to the same quarter one year ago, falling from -$0.28 million to -$63.16 million. The gross profit margin for WESTMORELAND COAL CO is rather low; currently it is at 20.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -21.93% is significantly below that of the industry average. Net operating cash flow has significantly decreased to -$19.08 million or 239.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. WESTMORELAND COAL CO 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, WESTMORELAND COAL CO continued to lose money by earning -$0.42 versus -$0.63 in the prior year. For the next year, the market is expecting a contraction of 1371.4% in earnings (-$6.18 versus -$0.42). Compared to its closing price of one year ago, WLB's share price has jumped by 176.75%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in WLB do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months. You can view the full analysis from the report here: WLB Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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