Trade-Ideas: Anadarko Petroleum (APC) Is Today's Momo Momentum Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Anadarko Petroleum (APC) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Anadarko Petroleum as such a stock due to the following factors:
- APC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $248.8 million.
- APC has a PE ratio of 64.9.
- APC is currently in the upper 30% of its 1-year range.
- APC is in the upper 25% of its 20-day range.
- APC is in the upper 35% of its 5-day range.
- APC is currently trading above yesterday's high.
- APC has experienced a gap between today's open and yesterday's close of 0.3%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.EXCLUSIVE OFFER: Get the inside scoop on opportunities in APC with the Ticky from Trade-Ideas. See the FREE profile for APC NOW at Trade-IdeasMore details on APC: Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of natural gas, crude oil, condensate, and natural gas liquids (NGLs) in the United States and internationally. The stock currently has a dividend yield of 0.4%. APC has a PE ratio of 64.9. Currently there are 19 analysts that rate Anadarko Petroleum a buy, no analysts rate it a sell, and 3 rate it a hold.The average volume for Anadarko Petroleum has been 3.0 million shares per day over the past 30 days. Anadarko has a market cap of $44.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.18 and a short float of 1.4% with 2.55 days to cover. Shares are up 19.6% year to date as of the close of trading on Thursday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Anadarko Petroleum as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.7%. Since the same quarter one year prior, revenues slightly increased by 9.0%. 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.
- The gross profit margin for ANADARKO PETROLEUM CORP is currently very high, coming in at 72.83%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.37% is above that of the industry average.
- Net operating cash flow has increased to $2,503.00 million or 32.36% when compared to the same quarter last year. In addition, ANADARKO PETROLEUM CORP has also vastly surpassed the industry average cash flow growth rate of -25.59%.
- APC's debt-to-equity ratio of 0.65 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that APC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.66 is high and demonstrates strong liquidity.
- Compared to its closing price of one year ago, APC's share price has jumped by 36.09%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Anadarko Petroleum Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV