Trade-Ideas: Triangle Petroleum (TPLM) Is Today's "Perilous Reversal" 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 Triangle Petroleum (TPLM) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Triangle Petroleum as such a stock due to the following factors:
- TPLM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.6 million.
- TPLM has traded 501,129 shares today.
- TPLM is down 3.7% today.
- TPLM was up 17.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TPLM with the Ticky from Trade-Ideas. See the FREE profile for TPLM NOW at Trade-IdeasMore details on TPLM: Triangle Petroleum Corporation engages in the acquisition, exploration, development, and production of unconventional shale oil and natural gas resources in the Bakken Shale and Three Forks formations in the Williston Basin of North Dakota and Montana. Currently there are 7 analysts that rate Triangle Petroleum a buy, no analysts rate it a sell, and 1 rates it a hold.The average volume for Triangle Petroleum has been 921,900 shares per day over the past 30 days. Triangle has a market cap of $544.4 million and is part of the basic materials sector and energy industry. The stock has a beta of 2.95 and a short float of 5.6% with 1.52 days to cover. Shares are up 26.5% year to date as of the close of trading on Tuesday.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 Triangle Petroleum as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.Highlights from the ratings report include:
- TPLM's very impressive revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues leaped by 554.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TRIANGLE PETROLEUM CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TRIANGLE PETROLEUM CORP continued to lose money by earning -$0.30 versus -$0.78 in the prior year. This year, the market expects an improvement in earnings ($0.60 versus -$0.30).
- The gross profit margin for TRIANGLE PETROLEUM CORP is rather high; currently it is at 53.69%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, TPLM's net profit margin of 15.19% compares favorably to the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, TRIANGLE PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, TPLM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- You can view the full Triangle 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.
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