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4/1/15: U.S. Silica Holdings (NYSE: SLCA) has regained footing after it got slammed by the energy sell-off in 2014. SLCA stock has climbed 36.8% year-to-date and is still a buy. We see more gains ahead in 2015.
U.S. Silica supplies products to oil developers, so investors panicked when the price of oil dropped more than 45% from September to December. After hitting a high of $73.43 in September, SLCA stock fell 69% to $22.71 by Dec. 16. But U.S. Silica is involved in much more than energy; the company has more than 250 other products that are used in the fracking industry as well as the glass, chemicals, foundry, and building products industries.
Last quarter, total revenue was up 67.1%. That far outpaces the industry average of just 10.2%. SLCA’s operating cash flow was also up nearly 182% to $51.8 million. The industry average is -0.3%. Currently, analysts surveyed by Thomson/First Call have an average price target of $39.15 for SLCA stock and one analyst has a high target of $78. In February, the company announced a new quarterly dividend yield of 1.54%.