A. Schulman, Inc Is Top Strong Buy Upgrade

For today's edition of our upgrade list, we used our website's advanced screening functions to search for UPGRADES to BUY or STRONG BUY with complete forecast and valuation data. They are presented by one-month forecast return. We had no STRONG BUY upgrades today, so all five tickers shown here are BUY-rated companies. Of these five BUY-rated stocks, Schulman Inc (SHLM) is our overall leader.

Ticker

Company Name

Market Price

Valuation

Last 12-M Return

1-M Forecast Return

1-Yr Forecast Return

P/E Ratio

Sector Name

SHLM

SCHULMAN(A) INC

26.85

-1.53%

22.66%

0.71%

8.54%

14.81

Basic Materials

WTFC

WINTRUST FINL

72.19

4.33%

34.56%

0.52%

6.22%

17.96

Finance

BSRR

SIERRA BANCORP

25.04

6.84%

37.89%

0.52%

6.22%

17.76

Finance

MTB

M&T BANK CORP

156.6

5.38%

34.09%

0.51%

6.09%

17.88

Finance

AMN

AMN HLTHCR SVCS

36.5

-6.17%

5.89%

0.50%

6.04%

14.41

Medical

For today's bulletin, we take a look at our top-ranked BUY upgrade, Schulman Inc.(SHLM). Schulman operates in one industry segment which is the sale of plastic resins to customers who use the products as raw materials in their manufacturing operations. The Company purchases plastic resins and other materials which either can be sold directly to customers or used by the Company in the manufacture of other products for sale to customers. All of the products which the Company sells are used for the same purpose--as raw material to be molded or extruded by the Company's customers.

Schulman is an Akron, Ohio-based polymer company that recently saw share prices dive due to lowered guidance. The company took that step due to issues related to "margin compression" in its European market--raw materials costs are rising while the firm cannot raise prices to match. The company now expects net income of $1.60-1.70/share which is down significantly from prior estimates of $2.08-2.80/share.

The company CEO, Joseph M. Gingo has noted that

While our volumes in Europe remain on track with our expectations, we are incurring significant margin pressure in the region due to the magnitude and timing of raw material cost increases. This compression compounds the macroeconomic headwinds and previously disclosed operational challenges thus making our full-year guidance unattainable, despite the continued progress we are making in this reset year.

Below is our latest data for Schulman Inc.(SHLM):

ValuEngine updated its recommendation from HOLD to BUY for Schulman Inc. on 2017-08-11. Based on the information we have gathered and our resulting research, we feel that Schulman Inc. has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Price Sales Ratio and P/E Ratio.

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

27.04 0.71%

3-Month

26.74 -0.42%

6-Month

26.98 0.48%

1-Year

29.14 8.54%

2-Year

27.51 2.46%

3-Year

27.26 1.53%

Valuation & Rankings

Valuation

1.52% undervalued

Valuation Rank(?)

55

1-M Forecast Return

0.71%

1-M Forecast Return Rank

92

12-M Return

22.66%

Momentum Rank(?)

74

Sharpe Ratio

0.11

Sharpe Ratio Rank(?)

55

5-Y Avg Annual Return

3.70%

5-Y Avg Annual Rtn Rank

56

Volatility

32.27%

Volatility Rank(?)

49

Expected EPS Growth

22.61%

EPS Growth Rank(?)

59

Market Cap (billions)

0.78

Size Rank

59

Trailing P/E Ratio

14.81

Trailing P/E Rank(?)

78

Forward P/E Ratio

12.08

Forward P/E Ratio Rank

74

PEG Ratio

0.65

PEG Ratio Rank

54

Price/Sales

0.32

Price/Sales Rank(?)

90

Market/Book

4.41

Market/Book Rank(?)

29

Beta

1.49

Beta Rank

20

Alpha

-0.30

Alpha Rank

17

 

Disclosure: None.

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