The Chaikin Power Gauge RatingTM for SHLD is bearish due to very weak earnings performance, very negative expert opinions and bearish price/volume activity. The rating in this stock report also reflects very attractive financial metrics. SHLD’s earnings performance is very weak as a result of poor EPS growth over the past 3-5 years and worse than expected earnings in recent quarters.
Financial Metrics Rating – Very Bullish
SHLD’s financial metrics are excellent. The company may be undervalued and has high revenue per share. The rank is based on a low price to book value, low return on equity and low price to sales ratio.
Earnings Performance Rating – Very Bearish
SHLD’s earnings performance has been very weak. The company has a history of weak earnings growth and has not met analysts’ earnings estimates. The rank is based on poor EPS growth over the past 3-5 years, worse than expected earnings in recent quarters and inconsistent earnings over the past 5 years.
Price/Volume Activity Rating – Bearish
Price and volume activity for SHLD is bearish. SHLD has underperformed the S&P 500 over 26 weeks and is experiencing sustained selling. The rank for SHLD is based on its relative weakness versus the market, negative Chaikin money flow, a negative Chaikin price trend, a positive Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Very Bearish
Expert opinions about SHLD are very negative. Analysts are lowering their EPS estimates for SHLD and short interest in SHLD is high. The rank for SHLD is based on analysts revising earnings estimates downward, a high short interest ratio, insiders purchasing stock, pessimistic analyst opinions and relative weakness of the stock versus the Nonfood Retail-Wholesale industry group.
