NEW YORK ( TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,800 U.S. traded stocks for potential upgrades or downgrades based on the latest available financial results and trading activity.
TheStreet Ratings released rating changes on 133 U.S. common stocks for week ending November 4, 2011. 89 stocks were upgraded and 44 stocks were downgraded by our stock model.
Rating Change #10
Anadarko Petroleum (APC - Get Report) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity.Highlights from the ratings report include:
- APC's revenue growth has slightly outpaced the industry average of 30.0%. Since the same quarter one year prior, revenues rose by 34.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, APC's share price has jumped by 27.49%, exceeding the performance of the broader market during that same time frame. Although APC had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- ANADARKO PETROLEUM CORP has exprienced 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ANADARKO PETROLEUM CORP turned its bottom line around by earning $1.52 versus -$0.34 in the prior year. This year, the market expects an improvement in earnings ($3.22 versus $1.52).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ANADARKO PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- 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 11634.6% when compared to the same quarter one year ago, falling from -$26.00 million to -$3,051.00 million.