QEP Resources Inc Stock Upgraded (QEP)
NEW YORK (TheStreet) -- QEP Resources (NYSE:QEP) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins, good cash flow from operations, impressive record of earnings per share growth and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 112.0% when compared to the same quarter one year prior, rising from $73.20 million to $155.20 million.
- 48.40% is the gross profit margin for QEP RESOURCES INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, QEP's net profit margin of 25.70% significantly outperformed against the industry.
- Net operating cash flow has slightly increased to $328.50 million or 9.71% when compared to the same quarter last year. Despite an increase in cash flow, QEP RESOURCES INC's average is still marginally south of the industry average growth rate of 12.47%.
- QEP RESOURCES INC reported significant earnings per share improvement in the most recent quarter compared to 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, QEP RESOURCES INC reported lower earnings of $1.49 versus $1.60 in the prior year. This year, the market expects an improvement in earnings ($1.59 versus $1.49).
- QEP, with its decline in revenue, underperformed when compared the industry average of 12.0%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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